Bitcoin (BTC) hash prices have plummeted in recent weeks, dropping to levels seen in early January.
HashPrice measures the market value of each unit of hashpower. The price of BTC along with network difficulty and transaction fees determine the value of HashPrice.
As BTC’s network difficulty surged to an all-time high and the value of the asset fell to a two-month low, miners faced difficulties as hash prices plunged to $61.38/PH/day, according to the Hashrate Index. You may face difficult times. data.
What does this mean for miners?
Hashrate index researcher Jalan Merelud said Bitcoin’s mining difficulty and hashrate surged more than 20% in 2023 after the digital asset improved its price performance.
He pointed out that BTC’s performance has motivated many peripheral operators to turn on their machines, which has increased market competition.
However, the crash of the flagship digital asset below $20,000 wiped out half of the gains made in 2023. This means that miners will face a situation similar to that of 2022, where the falling value of BTC will make mining unprofitable.
Mereld emphasized that BTC hashrate is likely to rise as more miners plug into the machine in the coming months. Already, several miners have revealed their intent to increase their mining capacity by bringing more devices online.
“If hash prices stay at their current levels, Bitcoin Prices must rise significantly…The recent development of HashPrice shows the importance of hedging earnings. “
Miners Face 30% Crypto Mining Tax
The situation for US-based BTC miners could get worse with a proposed 30% tax on all energy costs associated with mining cryptocurrencies.
US President Joe Biden’s 2024 budget plan included a new tax bill on cryptocurrency mining. The government says cryptocurrency mining activities require enormous amounts of energy and can harm the environment. He added that mining activity could raise electricity prices and create uncertainty for local power companies.
Satoshi Act Fund CEO Dennis Porter said: explained The proposal is “unfair and targeted discrimination.” He said that taxation iseffectively kill Bitcoin Mining in the USA. “
public miners storage tanks
Following a string of events, multiple Bitcoin miner stocks have plunged over the past 24 hours.