Bitcoin Mining Costs Spike To Nearly $50K As Miners Look To AI For Survival
04 Novembro 2024 - 7:30PM
NEWSBTC
Bitcoin mining is now a highly competitive industry that’s not just
expensive but technology-intensive as well. Individuals interested
in joining the growing mining industry must invest in a specialized
computer system, steady internet, reliable energy supply, and a
good amount of skill to manage the process. Related Reading: Why
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such, miners often turn to credit facilities to fund their
operations. Today, mining costs continue to grow, with some experts
saying that costs have skyrocketed to $49,500 as of the second
quarter. CoinShares reports that the second quarter data is $2,300
more than the first quarter when mining costs average $47,200. The
investment company further explained that the miners’ cash expenses
average $85,900, and prediction costs amount to $96,100. Failing to
secure a credit line is now a common complaint among BTC miners,
while others say rising interest rates worsen their situation. BTC
Miners Fail To Capitalize On Recent Price Rallies Bitcoin mining is
inextricably linked to the digital asset’s extreme volatility. For
example, many of our miners failed to capitalize on the rumors of
Bitcoin ETFs circulating in late 2023. In January 2024, the
Securities Exchange Commission (SEC) finally approved the
applications of at least 11 ETFs, pushing Bitcoin to breach the
$70k level. The sudden increase in the asset’s valuation only
showed that the mining industry is sensitive to these price
movements, especially after the halving of rewards took effect.
Today, many mining analysts are looking at models that can
anticipate the asset’s continuing increase in hash rate. Current
models used by most miners expect the rate to hit 765 EH/s. Time
For BTC Mining To Embrace Alternative Energy Sources? One of the
complaints against BTC mining is that it hurts the environment due
to the massive energy requirements, not to mention the carbon
footprint it emits. Experts say that if miners use alternative
energy sources, we can reduce our carbon footprint by 63% by 2050.
Miners should be ready to embrace these alternative energy sources
since expenses grow as the hash rate increases. Related Reading:
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Rise, Some Bitcoin Miners Turn To AI Since mining efficiency is
starting to fall, many miners are looking for ways to augment their
revenues. For example, many experienced miners are holding tokens
instead of mining them. Others turn to AI-related solutions as a
potential source of revenue. It’s safe to say that the BTC mining
industry is entering a new phase. When planning and moving forward,
miners and other stakeholders must consider the challenges, from
costs to compliance to competition. As costs continue to increase,
miners must find solutions and options to remain profitable.
Featured image from Dall-E, chart from TradingView
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