Cryptocurrency miners will be relieved, but only temporally
Bitcoin and other cryptocurrencies are gradually shaking off their recent price slump by fifty percent in the current exchange rates. But the price of bitcoin is still on the edge of profitability, even after rising above six thousand dollars. This forces many miners to shut down their machines. In March, the average computing power that miners supplied to a bitcoin network to keep it running was down by around a tenth. It is a bad sign for cryptocurrency miners.
What are the problems?
Problems are also reported by operators whose activity should be potentially most profitable to ensure than cheap energy available. This is an example of a Canadian company Upstream Data. It offers local oil and gas miners the opportunity to use their energy surpluses to power bitcoin. Also their other virtual coin machines.
It is the price of energy that is one of the main items which determine the profitability of cryptocurrency mining. “We have been growing month by month. Now we are stagnating, and we expect a drop in demand in April”. Explains Steve Barbour, Upstream Data founder Steve Barbour for Coindesk.
His clients are struggling with the problems of their core business. This because of the collapse in oil prices. Cryptocurrencies are just another source of financial difficulties for them at the current exchange rates.
Soon, cryptocurrency miners should be relieved even if the price of bitcoin remains the same as it is now. In a week, the bitcoin network will automatically reduce the demands placed on miners’ computers.
To think of successful cryptocurrency mining, they would need a tenth of less power
It is a mechanism in the operation of bitcoin. This to prevent the massive exodus of “minerals”, and the gradual death of the entire network. Those who shut down their mining facilities could, therefore, put them back into operation. The daily remuneration paid to miners will be halved. At least until the May “halving”. This according to the years of the known scheme.
If you would like to follow the changing price of Bitcoin, you can do that right here.
