Income of miners is growing, but profit falls. Why?

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2018-10-10 22:15:07

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Income of miners is growing, but profit falls. Why?

A New study has discovered some not very nice facts for miners. Despite the fact that Bitcoin now 40 percent more than a year ago, the profit from its production strongly decreased.

This year, the miners managed to earn $ 4.7 billion, however, due to the growing complexity of the network their actual income fell. Analysts also talk about the dominance of the big miners on the market which are gradually replacing the home farm.

the

the Role of equipment and cost

According to the study, China is now one of the few countries where electricity prices make mining Bitcoin is economically profitable. Recall that the average cost of one kilowatt of electricity in China is about 0.08 USD. To this figure should be added the cost of rental of premises, salaries of staff and cost of maintenance of the equipment.

All of these factors handicap the big miners by type Bitmain over small-scale miners of cryptocurrency. However, according to recent reports, even Bitmain receives 95 percent of the profits from the sale of Asimov, and not of mining.

Bitmain also closely links the sales strategy for the equipment mining of Bitcoin. According to Diar, the company may soon become a monopoly market, and its main goal is to make mining as beneficial for everyone. And although the company is a significant part Hasrat cryptocurrency, it will not use this advantage to the detriment of others. On the contrary, the more profitable mine, the more customers will want to buy from Bitmain a few more Asimov.

image Source — Bitcoinist

It is Unlikely that the current trend will continue in the market. While there are companies with sufficient of the Bitcoin mining industry will grow. However, the mining major cryptocurrencies will likely become the domain of big players with deep pockets.

Information on the state of the mining prepared in .

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