The criptocrisis deepens and this is reflected in the decrease of up to 50% of the electricity consumed by cryptocurrency networks. This is because the profitability of mining bitcoin has evaporated as the price continues to decline. Now, the price of bitcoin could go even lower if miners continue to sell their holdings, entering a deep downward price spiral.
The mining of the great cryptocurrencies is not going through its best moment, especially that of bitcoin. At a time when the world’s most traded cryptocurrency continues to hover around $20,000, miner profitability has dropped dramatically in recent months. It is that the cost of the total production to mine bitcoin is between US $ 18,000 and 20,000, and the price of the final product no longer offers great profits.
That is why now the miners decide to sell their holdings to at least cover their operating costs, and everything indicates that they will continue this path as long as the bitcoin price does not rebound. The point is that the fate of bitcoin depends a lot on the miners themselves, since they are the main holders of the crypto ecosystem.
This means that as the price of bitcoin goes down, the profitability of miners will also go down, to the point where it is no longer profitable to mine bitcoin. Miners then proceed to sell off their holdings en masse and further deepens the price decline..
Despite the price fluctuations that the cryptocurrency has suffered since its existence, the economic and technological fundamentals of bitcoin remain intact. These are: decentralized money without intermediaries, and digital transactions in a safe and fast way.. In that sense, it is difficult to believe that the most traded cryptocurrency in the world and that was able to rise to above US$65,000, will finally reach its total depreciation, as so many detractors have been announcing for months.