The profitability of Bitcoin (BTC) mining is facing a crisis. Right now, a miner earns for his investment the same as at the end of 2020, an important year for earnings from the activity. This, as a consequence of the recent price drop of the cryptocurrency and the rest of the market.
According to graphics Shown by the Hashrate Index, the hashprice, which is understood as the value earned for each terahash invested in the network, is at USD 0.143. This has not been seen since the fortnight of December of the year 2020.
The trend in this indicator has been dragging on for several days. Last week we reported in CriptoNoticias that the hashprice was at USD 0.16 and that, despite everything, did not decrease participation in the network. Nevertheless, the current display of the indicator infers a short term from volatile numbers.
The hashprice below 15 cents per terahash per day not seen since last December 13, 2020date when the figure reached USD 0.13, according to the own figures of the analytical firm of the Bitcoin mining pool Luxor Mining.
The fall in the hashprice responds to its direct relationship with the price of bitcoin and the difficulty of mining, which is currently at 29.79 T, 5.56% more than 12 days ago, according to Hashrate Index. Transaction fees also have an impact on the behavior of this index. They are currently at an average of 0.083 BTC.
It’s good to remember that the hashprice allows estimating what a miner can earn for a specific amount of hashrate invested in the networkwhich is the amount of computation used for transaction processing.
A small drop in hashrate
At the time the hashprice drops, Bitcoin hashrate also recorded a small decline.
According to the graphs of brains, a company dedicated to Bitcoin mining, the hashrate is 218 EH/s. Although it seems like a lot, it is actually 5% less than its last all-time high of 231 EH/s, reached just four days ago.
That the hashrate has dropped may respond to the fall in the price of BTC and the – plausible – disconnection of some miners. However, with the current numbers, the network is more than secure. Besides, there are reasons to believe that miner participation will continue this yearalthough the work is not so profitable at the moment.
As we explained in this CriptoNoticias article, the new breed of state-of-the-art miners, the ease of supplying the absence of old equipment and hardware at low prices, allow us to infer that Bitcoin mining will remain resilient, in the midst of a red sea.