• Market Cap: $1,147,324,493,533.65
  • 24h Vol: $38,982,745,620.94
  • BTC Dominance: 44.70%
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Three Bitcoin Mining Downward Difficulty Adjustments In A Row

Jon Hartney by Jon Hartney
July 22, 2022
in Bitcoin, Blockchain, Business, Market
0
Three Bitcoin Mining Downward Difficulty Adjustments In A Row
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

This will be the third mining difficulty downward adjustment in a row with four downward adjustments over the course of the last five difficulty epochs.

Related articles

NFT platform Enjin forks Polkadot parachain Efinity to new mainnet

NFT platform Enjin forks Polkadot parachain Efinity to new mainnet

June 8, 2023
Polygon Labs president testifies on democratizing the internet with Web3, blockchains

Polygon Labs president testifies on democratizing the internet with Web3, blockchains

June 8, 2023

The below is a direct excerpt of Marty’s Bent Issue #1240: “Another downward difficulty adjustment is on the way.” Sign up for the newsletter here.Bit

ASICs heating a greenhouse
via Clark Moody’s Dashboard

Don’t look now, but July 21, 2022, should bring a downward difficulty adjustment of around 5%, which will be the third consecutive downward adjustment and the fourth over the course of the last five difficulty epochs. Marking the longest streak of downward adjustments since this time in 2021, when miners were forced to unplug and migrate out of China as quickly as possible.

With the global macro outlook deteriorating over the course of 2022 and the bitcoin market experiencing a mass deleveraging event in the wake of Ponzi blow ups with many lenders who were exposed to one particular Ponzi scheme — 3 Arrows Capital — getting completely wiped out and bringing the bitcoin price down with them, bitcoin miners have been feeling the pain. The downward pressure on the price of bitcoin has pushed the hash price down with it; hitting a low of $0.08 TH/day exactly a week ago.

via Braiins Insights

Hash price has since recovered to $0.10 TH/day with the recent pump in price, but it is pretty clear that many players in the mining industry are feeling the pain. The two indicators I am looking at to gauge the pain are publicly-traded miners’ bitcoin treasuries — the holding or selling — and the price of ASICs. Over the course of the last two months, publicly-traded miners have sold tens of thousands of bitcoin to service debt and retain a cash runway for their businesses. At the same time, the price for ASICs as measured in dollars per terahash has been absolutely cratering, reaching levels not seen since late 2020.

I am personally seeing top-of-the-line machines being sold for $25-$30/TH this week. For context, these same caliber machines were selling for well over $100/TH right before the China ban and right around $100/TH in December 2022 when the dust created by the China ban settled. The price of ASICs is falling rapidly as miners who prefer not to sell bitcoin (or don’t have any to sell in the first place) decide to sell their machines instead to cover expenses and debt obligations. There are currently tens of thousands of machines that have not even been opened yet, sitting in warehouses across the United States. Some publicly-traded miners used their access to capital markets to secure massive ASICs futures orders that have been delivered over the course of this year. Some of those miners have been having a hard time finding the necessary capacity to plug all of those machines in in a timely manner. With mining stocks getting absolutely hammered alongside the price of bitcoin it is proving to be too costly to hold onto those ASICs, which are declining in value as well.

On top of this, miners with relatively high electricity prices have seen their operations turn unprofitable. If they are not able to stomach losses for consecutive months, they will shut off and liquidate their assets (ASICs). Hence, the extremely low ASIC pricing that the market is seeing right now.

I expect the price of ASICs to continue to fall throughout the summer as markets continue to tank and bitcoin hangs in the low $20,000 range. These fire sales from desperate miners and the manufacturers present an incredible opportunity for anyone in the mining industry with significant capital and the ability to execute. Your Uncle Marty thinks we’ll look back on late summer 2022 as one of the best times in bitcoin’s history to get into mining. If individuals or companies scoop up ASICs at these levels, are able to lock in reasonable electricity pricing, plug their machines in quickly and the price of bitcoin recovers at some point later this year, the amount of time it will take for these machines to ROI will be very short.

We’ll keep you freaks abreast of the situation as it unfolds. Until then, enjoy the downward difficulty adjustment! A beautiful reminder that Bitcoin works as designed and that you’re probably going to stack more sats if you’re a miner who is up and hashing right now.

Read Entire Article
Tags: bitcoinMagzineCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

NFT platform Enjin forks Polkadot parachain Efinity to new mainnet

NFT platform Enjin forks Polkadot parachain Efinity to new mainnet

by Jon Hartney
June 8, 2023
0

Enjin chief technology officer Witek Radomski said the new blockchain aims to promote creativity by facilitating the

Polygon Labs president testifies on democratizing the internet with Web3, blockchains

Polygon Labs president testifies on democratizing the internet with Web3, blockchains

by Jon Hartney
June 8, 2023
0

The US House Committee explores blockchain and Web3’s future as industry leaders testify on democratizing the

US federal court dismisses lawsuit against DeFi platform PoolTogether

US federal court dismisses lawsuit against DeFi platform PoolTogether

by Jon Hartney
June 8, 2023
0

The DeFi community funded the protocol's legal defense through a $14 million nonfungible token sale back in 2022

EU watchdog targets crypto ads on Instagram, Youtube, TikTok, Twitter

EU watchdog targets crypto ads on Instagram, Youtube, TikTok, Twitter

by Jon Hartney
June 8, 2023
0

The largest European consumer rights group alleges crypto marketers on popular social networks use misleading

GameStop fires CEO Matt Furlong months after axing crypto push

GameStop fires CEO Matt Furlong months after axing crypto push

by Jon Hartney
June 8, 2023
0

The executive, once instrumental to the company’s NFT efforts, was “terminated” amid lackluster Q1 earnings

Load More
  • Trending
  • Comments
  • Latest
NEXO risks 50% drop due to regulatory pressure and investor concerns

NEXO risks 50% drop due to regulatory pressure and investor concerns

September 30, 2022
51% of Ethereum blocks are now compliant with OFAC standards, raising censorship concerns

51% of Ethereum blocks are now compliant with OFAC standards, raising censorship concerns

October 14, 2022
All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

July 7, 2022
Zero-knowledge KYC could solve the privacy vs compliance conundrum: VC partner

Zero-knowledge KYC could solve the privacy vs compliance conundrum: VC partner

October 11, 2022
All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0
Crypto owners banned from working on US Government crypto policies

Crypto owners banned from working on US Government crypto policies

0
Korean startup Uprise lost $20M shorting LUNC

Korean startup Uprise lost $20M shorting LUNC

0
Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0
NFT platform Enjin forks Polkadot parachain Efinity to new mainnet

NFT platform Enjin forks Polkadot parachain Efinity to new mainnet

June 8, 2023
Polygon Labs president testifies on democratizing the internet with Web3, blockchains

Polygon Labs president testifies on democratizing the internet with Web3, blockchains

June 8, 2023
US federal court dismisses lawsuit against DeFi platform PoolTogether

US federal court dismisses lawsuit against DeFi platform PoolTogether

June 8, 2023
EU watchdog targets crypto ads on Instagram, Youtube, TikTok, Twitter

EU watchdog targets crypto ads on Instagram, Youtube, TikTok, Twitter

June 8, 2023

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • NFT platform Enjin forks Polkadot parachain Efinity to new mainnet June 8, 2023
  • Polygon Labs president testifies on democratizing the internet with Web3, blockchains June 8, 2023
  • US federal court dismisses lawsuit against DeFi platform PoolTogether June 8, 2023
  • EU watchdog targets crypto ads on Instagram, Youtube, TikTok, Twitter June 8, 2023
  • GameStop fires CEO Matt Furlong months after axing crypto push June 8, 2023

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • bitcoinBitcoin(BTC)$26,436.00-1.54%
  • ethereumEthereum(ETH)$1,844.28-1.42%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.16%
  • binancecoinBNB(BNB)$264.64-3.67%
  • usd-coinUSD Coin(USDC)$1.00-0.10%
  • rippleXRP(XRP)$0.52-1.82%
  • staked-etherLido Staked Ether(STETH)$1,842.34-1.62%
  • cardanoCardano(ADA)$0.326939-3.85%
  • dogecoinDogecoin(DOGE)$0.068041-0.44%
  • solanaSolana(SOL)$18.77-5.87%
  • matic-networkPolygon(MATIC)$0.78-2.26%
  • tronTRON(TRX)$0.077491-0.16%
  • litecoinLitecoin(LTC)$88.06-2.53%
  • polkadotPolkadot(DOT)$5.01-2.54%
  • binance-usdBinance USD(BUSD)$1.000.05%
  • avalanche-2Avalanche(AVAX)$13.92-3.80%
  • shiba-inuShiba Inu(SHIB)$0.000008-0.88%
  • daiDai(DAI)$1.00-0.04%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$26,526.00-1.29%
  • uniswapUniswap(UNI)$4.62-2.03%
  • leo-tokenLEO Token(LEO)$3.52-0.56%
  • chainlinkChainlink(LINK)$6.00-1.91%
  • cosmosCosmos Hub(ATOM)$9.57-4.16%
  • okbOKB(OKB)$44.54-1.75%
  • moneroMonero(XMR)$143.69-1.56%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.11%
  • ToncoinToncoin(TON)$1.65-0.11%
  • ethereum-classicEthereum Classic(ETC)$16.99-1.51%
  • stellarStellar(XLM)$0.087146-2.02%
  • bitcoin-cashBitcoin Cash(BCH)$111.76-0.79%
  • true-usdTrueUSD(TUSD)$1.00-0.35%
  • lido-daoLido DAO(LDO)$2.18-8.37%
  • internet-computerInternet Computer(ICP)$4.17-3.92%
  • filecoinFilecoin(FIL)$4.13-4.58%
  • quant-networkQuant(QNT)$110.96-4.87%
  • crypto-com-chainCronos(CRO)$0.059334-0.83%
  • AptosAptos(APT)$7.73-3.45%
  • hedera-hashgraphHedera(HBAR)$0.048414-2.20%
  • GGTKNGGTKN(GGTKN)$0.1121180.75%
  • ArbitrumArbitrum(ARB)$1.13-3.01%
  • vechainVeChain(VET)$0.017798-3.98%
  • nearNEAR Protocol(NEAR)$1.41-4.38%
  • apecoinApeCoin(APE)$2.90-2.82%
  • the-graphThe Graph(GRT)$0.114245-2.03%
  • paxos-standardPax Dollar(USDP)$1.00-0.11%
  • fraxFrax(FRAX)$1.00-0.21%
  • EdgecoinEdgecoin(EDGT)$1.00-0.03%
  • eosEOS(EOS)$0.890.55%
  • rocket-poolRocket Pool(RPL)$47.41-2.08%
  • blockstackStacks(STX)$0.65-0.59%
  • the-sandboxThe Sandbox(SAND)$0.488907-4.60%
  • algorandAlgorand(ALGO)$0.124172-7.01%
  • elrond-erd-2MultiversX(EGLD)$35.04-3.12%
  • optimismOptimism(OP)$1.38-2.51%
  • Rocket Pool ETHRocket Pool ETH(RETH)$1,981.87-1.37%
  • aaveAave(AAVE)$59.57-2.76%
  • render-tokenRender(RNDR)$2.23-4.39%
  • fantomFantom(FTM)$0.293028-2.77%
  • tezosTezos(XTZ)$0.84-4.06%
  • decentralandDecentraland(MANA)$0.418238-5.67%
  • theta-tokenTheta Network(THETA)$0.76-2.08%
  • usddUSDD(USDD)$1.00-0.21%
  • axie-infinityAxie Infinity(AXS)$6.23-5.25%
  • immutable-xImmutableX(IMX)$0.72-1.13%
  • BitDAOBitDAO(BIT)$0.483019-1.99%
  • WhiteBIT TokenWhiteBIT Token(WBT)$4.82-0.05%
  • radixRadix(XRD)$0.0671650.17%
  • havvenSynthetix Network(SNX)$2.13-4.39%
  • Bitget TokenBitget Token(BGB)$0.4828991.10%
  • kucoin-sharesKuCoin(KCS)$6.85-3.04%
  • flowFlow(FLOW)$0.63-4.65%
  • neoNEO(NEO)$9.01-3.32%
  • galaGALA(GALA)$0.026100-2.51%
  • curve-dao-tokenCurve DAO(CRV)$0.76-3.09%
  • CloutContractsCloutContracts(CCS)$52.461,000.00%
  • bitcoin-cash-svBitcoin SV(BSV)$30.33-1.34%
  • gemini-dollarGemini Dollar(GUSD)$1.000.23%
  • terra-lunaTerra Luna Classic(LUNC)$0.000098-0.08%
  • gatechain-tokenGate(GT)$4.07-1.64%
  • makerMaker(MKR)$628.72-0.62%
  • injective-protocolInjective(INJ)$6.92-4.61%
  • kavaKava(KAVA)$0.98-14.61%
  • klay-tokenKlaytn(KLAY)$0.165845-6.96%
  • marumaruNFTmarumaruNFT(MARU)$0.24991121.40%
  • bittorrentBitTorrent(BTT)$0.0000010.19%
  • iotaIOTA(MIOTA)$0.180429-1.97%
  • pax-goldPAX Gold(PAXG)$1,921.34-0.65%
  • casper-networkCasper Network(CSPR)$0.044156-0.56%
  • Tokenize XchangeTokenize Xchange(TKX)$6.13-3.41%
  • compound-ethercETH(CETH)$37.05-1.39%
  • conflux-tokenConflux(CFX)$0.229140-6.29%
  • tether-goldTether Gold(XAUT)$1,946.25-0.90%
  • xdce-crowd-saleXDC Network(XDC)$0.0345682.87%
  • chilizChiliz(CHZ)$0.087474-4.73%
  • huobi-tokenHuobi(HT)$2.84-1.15%
  • binaryxBinaryX(BNX)$165.90-5.97%
  • PepePepe(PEPE)$0.000001-4.56%
  • gmxGMX(GMX)$51.25-3.33%
  • mina-protocolMina Protocol(MINA)$0.490783-2.91%