What Dominates the Mining Market Currently (Mining Trends)

08/19/2023 01:51 • NFT Newsflash • 85 views

What dominates the mining market currently? The price of Bitcoin reached its peak at the end of 2017, and since then, with the gradual recovery of the cryptocurrency market and the growing interest and investment in cryptocurrencies, the price of Bitcoin has risen to nearly $20,000. However, due to the current market environment, the mining industry is still in its early stages, so we need to learn more about the mining industry.

Here are related articles: What dominates the mining market currently? According to data from Coinmarketcap, the market price of Bitcoin is about $18,500/TH, which has dropped more than 65% from its high point of around $16,300 on June 30, 2019. Currently, there are about 40,000 Bitcoin in circulation, and nearly 20,000 people have purchased Bitcoin since the beginning of this year. The current network hash rate of Bitcoin exceeds 1000PH/s and is still rising. The network hash rate of Bitcoin is also steadily increasing.

Although the price of Bitcoin may vary in terms of currency liquidity and technical performance, the fluctuation of Bitcoin price does not affect the development speed of the entire digital asset, as its stability and transaction costs are very low.

At the same time, looking at historical data, the surge in BTC’s network hash rate at the end of 2019 resulted in BTC’s average weekly earnings (electricity costs) per THash only being maintained at around $10, which confirms the mining of blocks and obtaining rewards. If calculated at an average speed of 1 day or 20 days, it means that the daily mining output profit will be higher. This also means that when users mine, they can store their BTC in a new wallet address. This can reduce the threshold for miners’ investment and increase their return on investment, while also allowing them to flexibly allocate their tokens to cope with possible future economic crises, thus reducing all the risks faced by mining.

However, it is currently unclear whether mining farms have sufficient investment capital to support Bitcoin mining, as most mining machines are developed and produced by foreign companies. Therefore, there is currently no large-scale mining company willing to provide their own services to support mining operations in the market.

Mining Trends

The development trends of mining machine manufacturers and the mining industry have always been a focus of attention. As more and more people join this industry, we can see that the supply-demand relationship of mining machines is undergoing changes, and for this transformation, the competition in the mining industry has already begun to intensify.

According to Coindesk, MicroStrategy, the largest Bitcoin ATM company in the United States, has purchased over 100,000 new ASIC chips to support cryptocurrency payments. Globally, Bitcoin’s market value has grown from nearly $100 million in 2017 to more than four times that amount now. Since November 2020, MicroStrategy has sold all of its BTC holdings at an average price of $1,000 per week, totaling about $300 million by the end of 2021. (coindesk)

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What Dominates the Mining Market Currently (Mining Trends)

Mining Trends

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