Bitcoin miners struggle as energy prices rise and hash prices fall • TechCrunch

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Its bitcoin prices It continued to hold near $20,000 last week, but some miners are collapsing as higher energy prices and historically lower retail prices drive profits down.

Although the bitcoin price has been dropping for a while and is down around 56% year-to-date, the dominoes are just beginning to fall. Bitcoin miners. What is driving the implosion?

“There are a lot of different issues in the works. A global recession is clearly looming, on top of inflation and rising electricity prices,” Christopher Perceptions, PerceptForm founder and CEO of NoCodeClarity (3 codeless web applications), told TechCrunch.

“Miners are struggling for a number of reasons right now,” Nick Hansen, CEO of Luxor Mining, told TechCrunch. “We are seeing a historically low hashrate, which means miner revenue is at an all-time low.”

The hash rate is a measure of the market value of each unit of hash power, which is determined by changes in bitcoin mining difficulty (which is currently high) and the price of the cryptocurrency.

photo credits: Hashrate . Index

according to data In Hashrate Indicator, analyzes Bitcoin mining data in Luxor. The current retail price is about $70.72, down 80.5% from $361.82 in last year’s date.

In addition, energy prices have risen in many markets, which means miners’ expenditures are at an all-time high, Hansen said.

At a high level, the higher the hash rate the more difficult it is Bitcoin miner — which means it takes more electricity to do that, Perceptions said. “If the price of electricity is high, it is difficult to make a profit.”

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