Because the value of Bitcoin is falling, the mining equipment has begun to operate at a loss. Electricity costs are rising and profits are falling. As Bitdeer points out, some equipment, like Antminer, that was produced in 2019 has stopped making a profit. So far, devices such as Antminer S19 and Whatsminer M30S+ and Antminer S19j are profitable.
They were produced last year, and are able to withstand the loss of Bitcoin at least another 15%, and if its value falls to the $20,000 mark, then it will also be unprofitable. Cryptocurrency miners are now trying to find countries where there are affordable prices for electricity. For example, this is Norway. According to data from April of this year, the country compensates at least 88% of the total energy needs from operating hydroelectric power plants.
According to a report from the Bitcoin Mining Council, as of the first quarter of 2022, about 58.4% of Bitcoin mining worldwide uses sustainable energy sources. This suggests that the amount of “green energy” being used to mine the cryptocurrency is increasing when compared to the same period last year.
Green mining is becoming a trend for many companies that engage in this type of activity. But how profitable will it be in the next 4-5 years? The reason is that scientists indicate that tremendous climatic changes are building up, heat waves will increase, and for a long period of time.
Many countries will have to cut their spending on various sectors of the economy to pay attention to expensive energy-saving technologies. This could lead to an even higher cost of electricity. Few companies are likely to be able to afford mining cryptocurrencies.
However, if equipment is produced that is even more environmentally friendly, then perhaps cryptocurrency mining can be profitable. As for cloud mining, it can become a market leader, but it will be controlled by a few major players with the appropriate financial and technological resources.
Be the first to know all the news, read more about cryptocurrencies and mining at CRYPTO-MINING.BLOG.
You like reading articles like this and you want to support the author, then you can subscribe to our Telegram channel and recommend us to your friends, it will really help support our project! Telegram: @cryptomineg (https://t.me/cryptomineg)