by winston » Thu Sep 01, 2022 9:31 am
Bitcoin miners are likely facing narrowing profit margins
Bitcoin miners are likely facing narrowing profit margins even after a break in the US heat wave allows them to turn rigs back on and add new machines they bought during the last bull run.
Bitcoin mining difficulty, an indicator of the amount of computing power being deployed to secure the blockchain network and earn rewards in the token, has jumped by 9.26 per cent over the last 2 weeks, according to data from btc.com.
The increase is the largest since January. While the jump in mining may seem bullish for companies such as Riot Blockchain and Marathon Digital Holdings, a higher level of computing power for the entire Bitcoin network can cause miners to earn less Bitcoin with the same input.
That risks further compressing profit margins – which were once on par with those of luxury-goods makers – that have already shrunk due to Bitcoin’s dramatic price decline and soaring energy costs.
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
