The current bear market is making it difficult for Bitcoin miners to mine BTC and make a profit.
With rising inflation, crypto market volatility, and a possible recession on the way, Bitcoin miners are having a hard time staying afloat by depending solely on Bitcoin mining.
As a result, Bitcoin's hashrate may take a direct hit because of miners' inability to make profits.
Bitcoin miners are struggling to make profits
In the last few months, several bitcoin mining firms have experienced a number of financial troubles.
Recently, Argo Blockchain announced that the company is currently facing a cash crunch after the collapse of a $27 million equity infusion.
Read more: Bitcoin Mining App: Can You Mine Bitcoin On A Phone?
Similarly, another Bitcoin mining firm, Luxxfolio, shared new insights on the current market upheavals that the Bitcoin mining industry has been encountering of late.
The firm shared how the bitcoin mining industry has been experiencing intense pressure due to the decline in the price of Bitcoin despite the rising hashrates.
Luxxfolio further stated:
The company went forward to announce that it may soon be compelled to shut down its operations if it fails to find a suitable buyer to help navigate the current market crisis.
Another Bitcoin mining company called Iris Energy has also published a similar statement.To deal with the present market conditions, the company is considering a restructure.
In a statement from Iris Energy:
BTC hashrate may soon tumble
With the mining industry struggling to stay afloat, Bitocin's hashrate may drop as miners migrate to new businesses in search of stable profits.
The miners' stance is changing due to rising inflation and electricity costs, which is making it difficult for them to mine BTC in peace.
Currently, it costs $19,300 to mine one bitcoin, which is not considered profitable in the current crypto environment.
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