Bitcoin mining has become more expensive than ever. With China and Russia, clamping on the miners in their countries, only time will tell what will happen to these currencies.
Bitcoin mining is expensive both fiscally and energy wise too. These places take up a lot of space and are very loud. They need a lot of electricity to operate and are highly specialized too. Bitcoin tokens are limited in supply and will cease to exist after one point.
This is the reason why many people have been investing in Bitcoin mining rigs over the years. With the energy prices rising over 40% in the last year itself, is it feasible to mine the coin anymore?
Many companies have laid off their employees due to the rising cost of energy and some have speculated that it might lead to a “death spiral”. But many people have come out in support of it too.
Arthur Mining has a capacity of 25MW. They use environmentally conscious sources of energy. But larger miners use up to 300MW of power that is obtained from the traditional grid only.
Many experts have suggested that Bitcoin will need to be mined in smaller enclosures and under smaller companies to comply with eco-friendly measures. With different states having different rates of electricity, it is hard to get a national average.
But as mining becomes more and more expensive some companies have liquidated their BTC holdings to pay off the bills. But as the industry is still in its infancy, only time will tell what will happen next.