Bitcoin miners struggle as energy prices rise and hash prices fall
Bitcoin prices have continued to hold near $20,000 this past week, but some miners are crumbling as spiking energy prices and historically low hash prices cut into profits. Even though bitcoin’s price has been down for a while and has fallen about 56% year to date, the dominoes just began to fall for Bitcoin miners. What’s driving the implosion?
“Miners are struggling for a multitude of reasons right now,” Nick Hansen, CEO of crypto-mining firm Luxor, said to TechCrunch. “We’re seeing historically low hash price, which means that miner revenues are at all-time lows.”Hash price is a metric to determine the market value for each unit of hashing power, which is set through changes in Bitcoin mining difficulty (which is currently high) and the price of the cryptocurrency.
Source
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