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CryptoWinter is getting lethal every single day. With a constant fall in the crypto market and currencies like Bitcoin and Ethereum everyone is getting severely affected. Whether we consider market participants, investors, watchdogs or miners, everyone is getting affected.
Bitcoin seems to radically fall trending at 21,600 USD at the time of writing. Market participants investing in Bitcoin are making a subtle shift to either Ethereum or altcoins. With Bitcoin pouring down at such a speed miners are getting affected too.
Bitcoin Miners in Deep Trouble
Bitcoin miners are facing the worst of all time witnessing such a price trend. Bitcoin mining consumes the most energy compared to other digital currencies. Miners are facing a drastic fall in their revenues touching yearly lows amid an incredible profit in 2021. And there’s just one way to reduce the effect: Cut down energy consumption costs.
Bitcoin mining is directly connected to electricity consumption.The Bitcoin mining is Proof-of-Work network and hence the miners need to reduce their electricity consumption. This will help them increase the revenue margins directly.
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From $500 to Ashes
Back in 2021, Bitcoin miners were generating huge revenue margins of $500 per MWh of energy. But, this number got severely affected with Bitcoin reaching $21,500. To make a resurgence in the revenue pattern it’s important for miners to figure out a way to reduce electricity costs.
Miners are often moving to different geographies in search of energy sources. One such traction was Russia before the war. Most of the public Bitcoin miners have faced drastic blows amid the fall of Bitcoin price trends to $21000s. The decline in the Bitcoin price trends has made numerous miners sell their holdings in order to keep going.
With such a decline in Bitcoin price trends it is getting difficult for the miners to survive. Many geographies have banned crypto mining due to high power consumption. With countries like China prohibiting bitcoin mining and subtle destabilization in Russia, some U.S. states are opening doors for miners.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
