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Miners and companies are leaving the cryptocurrency market in droves because it’s not making a profit

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As we have reported over the past few weeks, the cryptocurrency segment is going through a less good phase, with falling currency valuations, which has left investors on edge.

In this sense, this reality has several consequences, including the fact that miners and companies dedicated to this sector are leaving the cryptocurrency market en masse, because their mining is no longer profitable.

Cryptocurrency mining

Miners and companies say goodbye to the cryptocurrency market

The cryptocurrency market is not at its best, and more specifically Bitcoin, which is the most popular digital currency in the world, fell last Saturday (18), below $20,000, showing the lowest value since December 2020. At at the time of writing this articlethis cryptocurrency is worth $21,347.03.

So, we are now seeing some consequences and reactions to this drop in digital currencies. Recently, for example, we reported that we were witnessing the wholesale graphics cards used to mine cryptocurrencies.

And the latest news goes even further and indicates that also due to the increase in the price of electricity, miners and companies that invest in the cryptocurrency segment are now abandoning this same market en masse, because it ceased to be profitable.

As can be seen in the graph above, the energy consumption, in terms of TWh, referring to Bitcoin has seen an interesting increase between mid-2021 and the beginning of 2022. But after a certain stable time, this same consumption suffered a very sharp decline in Last times.

At the peak around 200 TWh, this consumption was equivalent to that spent by entire countries, such as Argentina. Another interesting comparison is that this same consumption was the same amount of electricity consumed by all data centers around the world in one year.

But, at the moment, even the big companies that bet on the practice of mining digital currencies are leaving this sector because they consider that it is currently a big challenge where they are not able to achieve profits and meet day-to-day expenses.

In addition, the energy consumption related to Ethereum ends up having the same characteristics. As can be seen in the graph above, there was a significant rise in January, which ended up slowing down and then falling sharply in recent weeks.

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