The hashprice returned to USD 0.14 per TH/day, surpassing the declines of last May.
The price of bitcoin woke up, above USD 31,700.
“After the rain, the bright sun always comes out,” says a song. Such a premise can be extrapolated to the profitability of Bitcoin (BTC) mining which, after days of declines, put a stop to it and stabilized at levels that can call for calm.
This is how they let you see the graphics from Hashrate Index, the analytical arm of the Bitcoin mining pool, Luxor Mining. According to the data, the hashprice (measured in US dollars), which is the estimated daily value for each terahash invested in the network, returned to $0.14 (cash).
This shows a recovery in the indicator, which is often used to measure the profitability of Bitcoin mining, and that during the month of May it experienced low levels, not seen since 2020when the COVID-19 pandemic started. At a certain point in the fifth month of the year, the hashprice fell to USD 0.11, increasing the crisis in the mining industry.
Another analytics firm, Brains Insights, confirm the uptrend of hashprice. According to the information they offer on their website, the indicator is at USD 0.135 per TH/day.
The hashprice is positively correlated with the price of bitcoin. According to the CriptoNoticias Price Calculator, the coin is now on a rise that led it to break (again) the USD 30,000 barrier, to trade at an average of USD 31,742.
Coincides with CoinMarketCap, that this Wednesday, June 1, details in its graphs the rise that BTC had since last May 29. The coin jumped from $28,000 to almost $32,000, an 11% recovery in a matter of hours.
That is why it is normal for the hashprice to start a rise, that could alleviate the miners who saw their profits decrease during the past month, although that did not influence so significantly, as they continued to operate with everything and obstacles.
It’s hard to talk about “normal” in Bitcoin mining now
Despite the tepid improvement in Bitcoin mining profitability, it is still difficult to speak of normalcy being reached. This according to Paulino Rossi, CEO of the Argentine mining company SouthMining.Capital, who spoke with CriptoNoticias on this subject.
For the specialist mining is a business “with very high volatility that has generated very high rates of return associated with very high risks.” Therefore, he maintains that the hash price rise it only shortened the crisis that revolves around the indicatorwhich “is still below the levels that can be considered relatively normal.”
Rossi points out that after the fall of LUNA and everything reported in that regard, the market was “sincere”. There was a purge, in his opinion, where only the strongest projects could survive.
“The crisis purifies, it is like pruning the tree, and only the most solid, predictable and guaranteed products are those that can last over time. The market has to learn that in innovation you have to take risks and do a deep analysis of the viability or not of projects that seem fantastic”.
Paulino Rossi, CEO of SouthMining.Capital.
In that purification, Rossi maintained, Infrastructure costs for Bitcoin mining were also disclosed. In fact, it suggests that there is a possibility of investment or entering new businesses. “Something that was impossible a while ago, mostly due to equipment availability,” he concluded.