Bitcoin Price Slips, Mining Rigs Getting Ancient And Giving Out Less Profits

Bitcoin Price Slips, Mining Rigs Getting Ancient And Giving Out Less Profits
Mining a Bitcoin block became a seamless process for the miners now as some miners are now dropping out of the network to cut down their losses.Recently on May 25, the Bitcoin mining difficulty slipped from 4.3317% to 29.897T. The mining difficulty of the crowned cryptocurrency automatically adjusts every two weeksAs the overall crypto market is witnessing bearish moves lately, Bitcoin was not untouched by this either. Its price has also suffered significant losses

Bitcoin Is Intact

Recently on May 25, the Bitcoin mining difficulty slipped from 4.3317% to 29.897T. The mining difficulty of the crowned cryptocurrency automatically adjusts every two weeks, depending on how much computing power, or hashrate, is securing the network, to keep the time needed to mine a block approximately 10 minutes.

As the overall crypto market is witnessing bearish moves lately, Bitcoin was not untouched by this either. Its price has also suffered significant losses, resulting in older models of the mining rigs to become unprofitable. Hence, the miners have decided to power them off. 

Bitmain’s Antminer s9 was giving out losses to miners that pay more than 6 cents per KW of electricity, as per a data by f2pool and luxor.

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Tough Times To Deal With

Miners which utilize hardware in the similar category as Bitmain s9s, with energy values more than 5 cents are likely to capitulate, Maverick Group and CMG Cryptocurrency Mining Group co-founder Denis Rusinovich statd to a news website.

Retail miners are the ones impacted by the unprofitability of these ancient mining rigs. They frequently make use of more expensive hosting packages and have escalated capital expenditure to procure hardware, said Rusinovich, Li Qingfei and Vera’s research head at f2pool.

The Big Picture

However, as a whole, during the previous year, mining difficulty of bitcoin will offer some “short term relief” for miners thriving to make ends meet, stated Compass Mining founder and CEO, Whit Gibbs.

Windows are opening to arise as the market gets distressed, said Vera. The Luxor team believes that there are several miners who deployed large future orders, but are no longer able to take them on.

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