2023-05-26 13:01:51
This is not the first time we have talked or written about how busy Bitcoin mining is this year. The long-lasting bear market conditions, the rising energy costs and the increased mining difficulty did not make it easy for anyone to make a profit. However, there are more and more signs that the hard times are over. Not so long ago, he was an analyst at Blockware Solutions posted on Twitter about it.
This is why good times are coming for Bitcoin miners
We’ve already seen, haven’t we, that BTC is a particularly resistant asset against market storms. The limited supply, the expansion of the possibilities of use or the negative feelings about banks make Bitcoin more and more attractive. And if there is a lot of interest in Bitcoin, then mining is also doing well. The analyst also highlighted that the development of ASIC machines is getting slower and slower, i.e. the appearance of a new mining machine will not make the old ones completely obsolete.. Thus, the growth rate of the network hash rate will also slow down. This significantly affects profitability. Because from now on, the miner who doesn’t rush to buy the latest machine right away will not be left behind, and even older devices can remain competitive for a longer period of time.
In addition, the time difference between the increase in the price and the increase in the hash rate increased. In order to add a new hash rate, miners must acquire energy, build infrastructure, and purchase additional machines. Overall, it can be said that the miners currently on the market can remain competitive much longer, because it is increasingly difficult for new miners to enter the market and thus increase the hashrate.
Blockware’s analyst also examined the impact of transaction fees on Bitcoin mining. The emergence of Bitcoin NFTs clearly helped increase the amount of transaction fees and thus increase the profits of miners. This is especially important in relation to low block rewards, when, for example, a halving will also halve these rewards. A plus factor regarding the miners’ positive outlook is that as the future supply of Bitcoin decreases, so does the dollar value of the not yet “mined” coins. In the end, there will be almost no future “supply”, so there will be less and less BTC on the exchanges. And as adoption and usage increases, this will together drive up prices for the remaining mining opportunities.
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