1
2
Bitcoin miners are dealing with lots of pressure following the recent difficulty adjustment increase on Nov. 20, 2022, and the leading crypto asset dropping further in value against the U.S. dollar following FTXâs collapse. Statistics recorded this past weekend show that bitcoinâs average cost of production has been a lot higher than bitcoinâs USD value recorded on spot market exchanges.
On Sunday, Bitcoin.com reported on Bitcoinâs difficulty rising by 0.51% at block height 764,064, and the increase pushed the difficulty to an all-time high at 36.95 trillion. After that difficulty transition, data shows the overall global hashrate dropped from 317 exahash per second (EH/s) to 233 EH/s.
The hashrate is currently coasting along at 250.59 EH/s, according to records from coinwarz.com. At the same time, BTCâs fiat value dropped a great deal after FTX collapsed and filed for bankruptcy protection.
Statistics on Nov. 21, 2022, show that the cost of bitcoin production is much higher than BTCâs current USD spot market value. The metrics recorded by macromicro.me indicate that the average mining cost is $19,662 today, while the USD value of BTC is recorded at 16,120 nominal U.S. dollars per unit.
The macromicro.me statistics indicate that bitcoinâs price in comparison to the cost of BTC production has been lower since Oct. 6, 2022. Macromicro.me says that the web portal uses data collected from Cambridge University in order to âfind out the average mining costs of bitcoin.â
âWhen mining costs are lower than bitcoinâs market value, more miners will join,â the macromicro.me website details. âWhen mining costs are higher than minerâs revenue, [the] number of miners will decrease.â
In addition to the metrics showcased on macromicro.me, Glassnodeâs hash price chart indicates that the hash price is at an all-time low. The chart highlights a âmetric for estimating daily miner incomes, relative to their estimated contribution to network hash-power,â Glassnodeâs description notes.
Analytics from braiins.com also indicate that the current hash value is lower than the current hash price. Similar to macromicro.meâs stats, braiins.com metrics show the change occurred around Oct. 6, 2022. If bitcoin prices donât increase or if they drop lower, a number of BTC Mining operations will face a squeeze out of the industry if they are not facing this situation already.
What do you think about bitcoinâs spot market value dropping below the crypto assetâs cost of production? Let us know what you think about this subject in the comments section below.
1
2
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio youâre using to start.
0
0
