Cryptocurrency

Bitcoin

Steve

The cryptocurrency world is experiencing yet another shift, and this time it's the Bitcoin <a href="https://ultramining.com/news/en/bitcoins-rebound-above-30k-boosts-hashprice-a-4-leap-in-24-hours/">hashprice</a> that's drawing attention. Recent data highlights that the Bitcoin <a href="https://ultramining.com/news/en/bitcoins-rebound-above-30k-boosts-hashprice-a-4-leap-in-24-hours/">Hashprice</a> Index has taken a tumble, hovering around a base value of approximately $60 USD/(PH/s)/day. This shift has significant implications for miners, particularly those utilizing the common ASIC, according to <a href="https://twitter.com/SGBarbour/status/1716454867370480109">SGBarbour</a>. 
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 <img src="https://lh7-us.googleusercontent.com/P3Yi20pGe6DOIwnpoUSD8M6U8n5tQP9Hx0yxQTxVIU6fhjsuDlJhWMTY4aNHIMol5iusfXNGLM0gOx6vegeYdUG1_NsDZD6wFF7JD0Yvhypfh06kLnDmBWAqRy2060xqD2rXPiLzJ0Pp6KhVrqpf-54" alt="">
</figure> 
As observed in the charts, the hashprice has witnessed quite the rollercoaster journey over the past few years. The peak, seen around 2020, reached a staggering 500 USD, but since then, it has showcased a declining trajectory, ultimately plateauing near the $60 mark in 2023. 
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 <img src="https://lh7-us.googleusercontent.com/ak8ZhWnU9KP35yYVntssjDQSq0fj77YLkrr-e2c1paXFL5WW9MhjpUFYzxU1_xpuMEfrlcdP_-paEqJ31kxUE6jfOggXvcW6LH_fAH8n9cGissVSW1E_LKOaQl8BihIORdYmRieLOV3XkUwLvt90--M" alt="">
</figure> 
Furthermore, a detailed scenario analysis of the payback period for the S19j Pro, a popular mining rig, has brought forth some intriguing insights. The break-even point for this ASIC is now leaning towards $0.08 per kWh. This implies that miners would only start seeing profits if their <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> costs are below this threshold. Considering varying <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/">electricity</a> costs worldwide, this sets a tough benchmark for many miners, especially those in regions with higher energy prices. 
Steve Barbour, a prominent figure in the crypto domain, pointed out the situation on his social media. He mentioned the $0.08 / kWh breakeven for the widely-used ASIC and commented on the pressing issue faced by <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">hosting</a> services. With increasing overheads and diminishing returns from mining, <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">hosting</a> services are indeed grappling with the economic pressure. 
In conclusion, the current hashprice trend combined with escalating <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">energy costs</a> might lead to a restructuring of the cryptocurrency mining landscape. Miners will be prompted to re-evaluate their strategies and perhaps even consider relocation to regions with cheaper electricity. Only time will tell how the industry navigates this challenging phase.

Dipping Hashprice Pressures Cryptocurrency Miners as Breakeven Point Rises

Ultramining_Eng

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