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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Cryptocurrencies

Cryptocurrencies

BTC mining expenses fall to their lowest level in 10 months

BTC mining expenses fall to their lowest level in 10 months
Photo by Olya Kobruseva/dark luxury travel shopping showing bitcoin mining Photo by Olya Kobruseva/dark luxury travel shopping showing bitcoin mining
BTC mining expenses fall to their lowest level in 10 months
Photo by Olya Kobruseva/dark luxury travel shopping showing bitcoin mining Photo by Olya Kobruseva/dark luxury travel shopping showing bitcoin mining

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The cost of mining a single Bitcoin has decreased, which may assist in halting the downward trend in profitability while reducing the network’s power requirements.

Due to more effective mining equipment and a 6.7% decline in difficulty from its high in May, the cost of mining one Bitcoin (BTC) has reached ten-month lows.

Bitcoin manufacturing costs have decreased from $24,000 at the beginning of June to around $13,000, according to JPMorgan strategists led by Nikolaos Panigirtzoglou on Wednesday.

According to experts quoting a Bitinfocharts graphic, this is the lowest it has been since September 2021, and it occurs as mining difficulty has decreased from its May highs of 31.25T to 29.15T.

Lower mining costs may reduce the strain on miner sales and boost profitability. However, according to Bloomberg, the strategists were nevertheless pessimistic, saying that “the drop in the manufacturing cost would be regarded as negative for the Bitcoin price forecast moving ahead.”

They continued by saying that some experts believe the manufacturing cost to be the bottom limit of the BTC price range in a bear market. BTC prices are expected to decline to roughly $13,000, which would correspond with the drawdowns of 80%+ in the past two bear markets, according to a number of analysts. Since its record high in November, the price of bitcoin has fallen by 70%.

Although it is associated with price changes, the cost of producing bitcoin peaked soon after price peaks in April and November 2021 and has since declined along with markets.

A decrease in power use has been connected to a decrease in manufacturing costs.

The projected daily power need for the network is 9.59 Gigawatts, according to Cambridge University’s measure of Bitcoin energy use. 

This is a drop of 33% from the previous month and a 40% drop from the high demand of approximately 16 GW in February 2022.

As a result of rising energy costs and a decline in BTC values, several miners have also shut down older and less effective mining equipment since doing so has become unprofitable.

The Bitmain Antminer E9, which was newly introduced this month, is one of the most effective products on the market, according to Asicminervalue, with a maximum hash rate of 2.4Gh/s and power consumption of 1,920 watts.

On the other hand, miners have been hammered hard by both the drop in BTC prices and the rise in global energy prices. As a result, mining profitability has decreased by 63 percent since the start of the year. According to Bitinfocharts, mining profitability is $0.095 per day per terahashes per second, which is the lowest level since October 2020.

However, the decrease in manufacturing costs may stop the decline in profitability in its tracks and even turn it around in the upcoming months.

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