The falling price of Bitcoin is making mining cryptocurrencies unprofitable…
by Manoj Sharma for CNR
With the recent crash in the cryptocurrency market, profitability in mining Bitcoin has certainly taken a drastic dip. And now, as it turns out, this has led many Bitcoin mining farms in China to shut down their operations.
The shutdown of operations can be attributed to the increasing electricity traffic during the dry seasons, and the costs associated with that aren’t coverable from Bitcoin mining profits. Mining, bluntly, has got more expensive, and it’s showing nowhere near the return it once did. Miners have even turned to the BCH network as the computing power of the Bitcoin network has dropped by 8%.
This is not the first time cryptocurrency mining farms have shut down their operations. A week ago, two Bitcoin miners abandoned operations in a Swedish county due to the unaffordable electricity tariffs.
These incidents raises questions amongst Bitcoin enthusiasts as to whether Bitcoin mining is still profitable or not.
Industry experts believe the declining profitability in mining Bitcoin will discourage people from getting involved, which eventually will increase the price of Bitcoin due to low or limited supply. Could that lead to another crash in the market? It’d be remiss to rule much out after the past week.
After all, Bitcoin and other altcoins have suffered the bear market throughout the week. Prices have steadied for a day or so, but it’s not clear yet whether a corner has been turned. Until it is, expect more and more cryptocurrency mining operations to shut down their rigs.