#worldnews #Bitcoin #Mining⠀
👉 Bitcoin is ruining the market
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The total costs of the leading mining companies exceed Bitcoin's value. Bitcoin's fall from record levels has exceeded 30%, with computational complexity increasing by 10.5%. Public
mining companies have found themselves in a near-catastrophe situation.
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Reminder: BTC calculation complexity is adjusted every two weeks, depending on the
mining rig's total capacity. The adjustment is necessary to maintain the block
mining speed once every 10 minutes.
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On July 31, the difficulty of mining increased by 10.5% at once - the most significant jump since October 2022. At the same time, Bitcoin went into a correction, collapsing to $49k on August 05. Despite the partial recovery, yields from the power petahesh remain near the anti-record and now stand at $41/day.
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At this yield, the average cost of mining a single coin is $43,000 - this is the result based on the second-quarter performance of the
mining company Marathon Digital.
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These calculations do not consider, for example, payments on loans taken earlier for the construction of computing centers, the purchase of ASIC blocks, or all sorts of administrative costs. It turned out that such monsters as Marathon and Riot are operating with a negative result. This is a consequence of increased complexity and falling revenues due to halving.
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Both companies continue to hoard coins, expecting Bitcoin to rebound significantly and return net income in the future. However, Core Scientific, for example, had the same vision until 2022, but the subsequent bear phase drove the company into bankruptcy. And the likelihood of such a scenario repeating is very high.
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We support the view that Bitcoin's prospects remain favorable. But whether it is worth investing in
mining companies right now or preferring to buy Bitcoin directly is a relevant, complex, and dangerous question.
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What do you think?
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Profits to y’all!