Arcane Research: Mining profitability may fall

A recent report by Arcane Research said that the profitability of bitcoin mining may decrease. This can happen under the pressure of two factors - a reduced cost of bitcoin and an increase in the hash rate in the blockchain.

The document says that bitcoin has been trading sideways since the beginning of the year. When making calculations, analysts took into account the cost of electricity in the amount of $0.05 per kWh and the price of bitcoin in the amount of $39 thousand.

At the same time, it turned out that cryptocurrency mining on the Antminer S19 device brings a profit of $31,000 from the sale of one mined BTC. Less efficient devices, like the Antminer S9, bring in 13k per 1 BTC.



The reason for the decline in mining profitability is the fall in the price of bitcoin, which has lost more than 13% since the beginning of the year. During the same period, the hash rate increased by 15%.

This indicator demonstrates an increase in the capacity that mines bitcoin. This means that there is less income per miner. And the current situation in the future, according to Arcane Research experts, will only get worse.

Last year, against the background of the rise in the price of bitcoin, additional prerequisites appeared for increasing mining capacities. This was facilitated by the ban on mining in China, which led to a drop in hash rate.

Seeing the prospects for business development, many large companies and private miners began to increase their capacities. By autumn, manufacturers of video cards and mining rigs noted an increase in the number of orders for their products.

Many of the units that have been released have either already been put into operation or will be put into operation in the near future. This will further increase the hash rate, according to Arcane Research. And if the price of bitcoin does not increase in the near future, the profitability of cryptocurrency mining will decrease.

Against this background, since the beginning of the year, interest in mining equipment began to decline. The cost per 1 TH/s of power of popular ASIC miners with energy efficiency above 38 W/TH has decreased by 20%. Therefore, the situation is gradually escalating.



We will follow the development of the situation. Read our news and subscribe to social networks. You can also start mining cryptocurrency using Hive OS service.

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