Bitcoin (BTC) Miners May Start Quitting, Expect Hash Rate to Drop: Crypto Manager

News
Fri, 03/13/2020 - 12:15
Yuri Molchan
As Bitcoin is trading at $5,500 after climbing back from below $4,000, a crypto asset manager says that mining is becoming unprofitable and miners may start quitting
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Contents

March 12 has become ‘Black Thursday’ on crypto Twitter after Bitcoin plunged around 40 percent that day and reached a bottom in the $3,900 area. Since then, the flagship currency has recovered some of its losses and is now trading in the $5,500 zone, as per figures from CoinMarketCap.

Meanwhile, a crypto asset manager has shared an interesting chart. It says that, now, some Bitcoin miners may start switching off their rigs due to the recent Bitcoin price crash.

‘Bitcoin miners now unprofitable’

On his Twitter page, digital asset manager Charles Edwards has shared a chart, saying that the current Bitcoin price level is becoming unprofitable for miners.

Currently, he explains, the cost of an electricity bill for mining BTC is higher than the price of one Bitcoin. If the current situation holds much longer, Edwards says, Bitcoin miners may start switching off their gear and getting out of the business.

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What happens if the price holds at $5,000?

A Twitter user has asked a similar question about Bitcoin mining to the founder of Quantum Economics, Mati Greenspan.

Dimi Arhontidis was wondering what Bitcoin miners will do if the BTC price remains at more or less the same level until the halving and throughout it. Since the halving cuts miners’ rewards in half, it could become a serious issue for them.

“Honest question. What happens to #btc miners and btc in general if this situation keeps up during the halving?”

Mati Greenspan believes that, certainly, some miners will leave and the hash rate will go down. However, new people, who wish to support the network, will quickly take their place and begin verifying transactions on the Bitcoin chain.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.

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