After a chance decline in stock market crash (remember Bitcoin should be a hedge against market volatility?), cryptocurrencies are recovering to their historic climax. Nevertheless, even for some larger mining operations, cryptocurrency mining doesn’t seem worth it anymore. According to recent data released by Coinshares, the cost of electricity and computing power required by Bitcoin usually exceeds the actual value of the coin.
Here is how mathematical decomposition: For large mining companies, mining a single bitcoin is over $82,000, which is currently worth about $95,000. This is still a technical profit, although profits are getting bigger and bigger than just one-half of the profits. In the third quarter of 2024, the necessary calculations are to be performed to mine the necessary calculations for Bitcoin, so the cost per coin is about $56,000, so the price has risen by about 47% in just a few months.
Of course, most people are not industrial miners. For smaller tissues, the equation leaves them underwater. For U.S. miners operating on a large scale, the estimated price is close to $137,000 for a single BTC. If you’re mining in Germany, math will get worse: a coin will cost about $200,000. Both prices are close to Bitcoin’s all-time highs, which means you will have to lose ahead of time and keep losing, hoping that future cryptocurrency aircraft will rise to new highs.
There are some pins for the “reason” in the sudden price difference (it is worth noting that some people think that the math of mining has not been working for a while now). The first is the rising cost of electricity, a problem that hits the United States and many countries, which is the result of inflation, the result of Trump’s trade war, and the increasing demand for high-USAGE technologies such as artificial intelligence. These tariffs also increase the cost of mining equipment. There is also the fact that Bitcoin has been cut in half about a year ago, a process that has lowered the rewards for mining, designed to slow down the speed of new coins entering the market. As a result, its mines are becoming increasingly expensive and spending less on doing so.
For most people, Bitcoin mining is no longer profitable and no loss of value. But this does exacerbate the relic of Bitcoin, and there is no problem. For money that should have been a dispersed and some kind of equalizer, wealth has accumulated to a large extent in the Fiat way. According to Bitinfocharts, the highest wallet address accounts for more than 90% of all BTC. If mining is an equalizer, given the cost, it certainly is not now. The rich get richer.
