The crypto domain has been walking the tightrope between unprecedented crashes and rocketing global concerns, affecting it from all directions. Crypto sector has also faced a lot of turbulence lately from factors like macroeconomic crashes to the aftermath of Celsius going bankrupt and collapsing. Things are already looking gloomy for crypto miners, and analysis reveals the mining landscape is about to get a lot more difficult.
Saddening statistics were observed when leading analysts studied Bitcoin’s data from the previous year. The analysis was conducted by financials experts belonging to J.P. Morgan, the acclaimed global pioneer known for providing supreme financial solutions to leading countries around the world. Analysed data shows that the expenditure being poured into producing Bitcoin far outweigh the profits being made from mining since the start of June. When data of every month was considered, the numbers also shed light on the fact that this plunge was the deepest to ever happen among the last ten-month statistics. The crypto depression is made worse with more productive hardware being made for mining. This is however not being matched with an upward tick in crypto mining numbers and the strain on mining remains.
Cryptominers’ Future Remains Uncertain
J.P. Morgan’s experts observed that while any reduction in the cost of producing Bitcoin might look temporarily hopeful, it is a definite concern for Bitcoin’s pricing in the upcoming months. Crypto experts had predicted the expenditure to produce Bitcoin would rocket last year which it did, but a respite also came when the crypto environment tried to bounce back from global economic pressures. This led to a slight reduction in the expenditure required for production, but it was actually associated with lower levels of electricity-usage. Trends from this year show that this was due to many cryptominers using outdated mining rigs in the face of climbing energy-driven inflation and unforeseen BTC slumps. Both of these factors have exacerbated the lucrativeness of mining. Crypto mining experts hope that this would hopefully at least provide resilience against future collapses in mining profits.