The profitability of Bitcoin mining directly depends on the total power involved, the complexity of mining and the price. coins. On January 15, the network hashrate updated its historical maximum, reaching 231.2 EH / s.
Image source: coinwarz.com
Due to the increase in power, the expectedincreasing complexity. If at the beginning of last week growth of 0.7% was predicted, now it is expected to increase by 6.1%. In this case, after about four days, the difficulty will also update the all-time high.
Image source: btc.com
The complexity grows as from an increase in the numberminers, and because of the improvement of ASICs. In November 2021, Bitmain introduced the new Antminer S19 XP model, demonstrating 140 terahesh of power with the same 3 kW of power consumption. This gives an increase in energy efficiency by 37% and profitability by 25% against the S19 pro model due to the use of 5nm chips. Analyst agency Luxor estimates that by the end of 2022, a quarter of the global hash rate will be provided by S19 XP.
To date, the largest order for a newmodel in Bitmain placed Marathon Digital, which plans to become the largest publicly traded mining company in the world in a year. The number of ASICs available during this time should grow to 199 thousand, and the total computing power - up to 23 EH / s.
The current cost of Bitcoin is estimated at $34thousand, and the profitability of mining is 25.6%. Future complication will lead to a decrease in the profitability of production. As a rule, after it falls to zero and below, Bitcoin rally follows.
Image source: twitter.com /venture-founder
The lower the mining premium, the more coinsaccumulate miners in anticipation of subsequent growth. Now their reserve exceeds 1.9 million BTC or 10% of the total supply of coins. In addition, not only miners, but also hodlers returned to accumulation.
Image Source: Cryptocurrency Exchange StormGain
The upcoming increase in difficulty, all other things being equal, will cause Bitcoin to rise in price in the long run, as the accumulation of coins will lead to a reduction in supply in the market.
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)