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Bitcoin Miners Face Unprofitability Crisis
11 Dec
Summary
- Bitcoin miners are nearing unprofitability due to the crypto downturn.
- The hash price, a measure of mining revenue, reached a record low.
- Most tracked public miners face expenses exceeding their revenue.
The current cryptocurrency downturn has severely impacted Bitcoin miners, pushing many towards unprofitability. The energy-intensive machines that facilitate blockchain operations are being scaled back as operators struggle to maintain operations.
A critical indicator, known as the hash price, recently plunged to a record low. This metric, which reflects mining revenue, is now below the median cost required to mine Bitcoin. Consequently, expenses are outstripping revenue for the majority of tracked publicly traded miners.
This challenging financial environment is forcing miners to curtail their operations. The situation underscores the volatility of the cryptocurrency market and its direct effect on the infrastructure that supports major digital currencies like Bitcoin.
