Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
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@campuscodi Out of curiosity, is this still the case? This article is about three weeks old… doesn't the Bitcoin hash difficulty adjust itself every two weeks? My understanding is the hash difficulty mechanism is *supposed* to serve as a check on mining going cash negative, so it's interesting if the mechanism fails. (Also, the BTC price itself has gone up a chunk since Mar 22.)
@mcc the cost of electricity factors in heavily - can’t really make a general statement. I went down a rabbit hole on this a couple months ago. Disclaimer - I’m not a miner or crypto investor, was just curious as the price was falling what the implications would be.
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Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8%
The average production cost was sitting at $88,000 per bitcoin in mid-March, according to Checkonchain's difficulty regression model.
(www.coindesk.com)
Yayyyy 🥳
️ 🥳 -
@mcc the cost of electricity factors in heavily - can’t really make a general statement. I went down a rabbit hole on this a couple months ago. Disclaimer - I’m not a miner or crypto investor, was just curious as the price was falling what the implications would be.
@BurritoSommelier It does, yeah. What I mean is the difficulty-adjustment mechanism is supposed to be a check whereby the Bitcoin mechanism can correct for things like a sudden increase in the cost of energy. (But of course the fact it's *intended* to have this effect does not mean it *will* have the effect.)
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@campuscodi what if the Dutch Tulip bubble destroyed the planet’s ecology on its way to the history books
@aizuchi @campuscodi Now that is a history lesson I would actually pay attention to!
'The Flower That Ate The World.' It gives a whole new meaning to 'market crash.' If the ecology went with the economy, I guess we’d all be living in a very colorful wasteland right now! -
@aizuchi @campuscodi Now that is a history lesson I would actually pay attention to!
'The Flower That Ate The World.' It gives a whole new meaning to 'market crash.' If the ecology went with the economy, I guess we’d all be living in a very colorful wasteland right now!@rudy_paul200 @campuscodi careful
World leaders are saying “hold my beer” even now -
@fabrice @campuscodi I wonder if you have to remember that old SNL commercial about the bank that just made change to get that joke?
@alexlubertozzi @fabrice @campuscodi "The answer is simple: Volume."
https://youtu.be/KodqIPMbyUg?si=Z54922Cb3kXpjozp -
@rudy_paul200 @campuscodi careful
World leaders are saying “hold my beer” even now@aizuchi @campuscodi Exactly. It feels like we’re living through the 'sequel' that no one asked for. History repeats itself, but this time it feels like it’s on fast-forward with the volume turned all the way up!
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Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8%
The average production cost was sitting at $88,000 per bitcoin in mid-March, according to Checkonchain's difficulty regression model.
(www.coindesk.com)
@campuscodi only if you aren't mining with renewable energy sources. Miners who took the hit a few years ago to invest in renewable energy are still in the green.
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@notyourfanboy @RegGuy @campuscodi
Sounds almost like they don't believe in the hype...
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Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8%
The average production cost was sitting at $88,000 per bitcoin in mid-March, according to Checkonchain's difficulty regression model.
(www.coindesk.com)
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@BurritoSommelier It does, yeah. What I mean is the difficulty-adjustment mechanism is supposed to be a check whereby the Bitcoin mechanism can correct for things like a sudden increase in the cost of energy. (But of course the fact it's *intended* to have this effect does not mean it *will* have the effect.)
@mcc well that’s a whole mechanism I wasn’t aware of, thanks for the info about that!
I was mostly looking into price points and when is it no longer cost effective, but I never saw that mentioned or taken into account
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@mcc well that’s a whole mechanism I wasn’t aware of, thanks for the info about that!
I was mostly looking into price points and when is it no longer cost effective, but I never saw that mentioned or taken into account
@BurritoSommelier bitcoin has so many mechanisms, just an absurd convoluted number of mechanisms
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Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8%
The average production cost was sitting at $88,000 per bitcoin in mid-March, according to Checkonchain's difficulty regression model.
(www.coindesk.com)
@campuscodi @JSteven GOOD.
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@campuscodi I do wonder how much bitcoin is mined on someone else’s power.
The classic model of hacking a server, install a bitcoin miner, get coin without paying for power.It might make bitcoin mining malware more attractive?
@Robsonde @campuscodi ASICs are so much more power-efficient than GPUs that very little mining is done on hacked computers. It still happens because it's pure profit, but it's only a tiny portion of the total network hashrate.
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@campuscodi Just wait until they realize that the inefficiently solved math problems are actually worth nothing at all!
should've used boinc and gridcoin. you also dont earn money, but at least the solved tasks help real world problems
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Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8%
The average production cost was sitting at $88,000 per bitcoin in mid-March, according to Checkonchain's difficulty regression model.
(www.coindesk.com)
@campuscodi (Plays "You Suffer" by Napalm Death)
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@campuscodi Out of curiosity, is this still the case? This article is about three weeks old… doesn't the Bitcoin hash difficulty adjust itself every two weeks? My understanding is the hash difficulty mechanism is *supposed* to serve as a check on mining going cash negative, so it's interesting if the mechanism fails. (Also, the BTC price itself has gone up a chunk since Mar 22.)
@mcc @campuscodi
Yes difficulty got adjusted.
Miners can have incentives to temporarily mine at a loss.
If you have an (temporary) adversary that depends on immediate cash flow with their mining activities, you can drive their mining operations temporarily off, which gives you a higher share in the market, which you can use to reduce the selling pressure, making your own holdings more valuable.
If this was the reason, idk, I'm just rambling.
All I know is that in this shitcoin economy there are lots of (semi) hidden incentives. Looking forward to the day they can't gain new cash flowing into their scam. -
@w_b @campuscodi
Never. At least not all together. Profits through wash trading and money laundering are to strong of an incentive and shitcoins serve that market to well. -
@campuscodi I do wonder how much bitcoin is mined on someone else’s power.
The classic model of hacking a server, install a bitcoin miner, get coin without paying for power.It might make bitcoin mining malware more attractive?
@Robsonde @campuscodi I don't think you'll get far with that approach today, the hashrate of any normal machine is minuscule compared to the dedicated hardware that professional miners use. Maybe if you have a whole botnet of hacked servers...
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Bitcoin miners have entered the red as it now costs $88,000 to mint a $69,000 bitcoin
Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8%
The average production cost was sitting at $88,000 per bitcoin in mid-March, according to Checkonchain's difficulty regression model.
(www.coindesk.com)
@campuscodi so many uninformed takes ITT.
1) mining runs on specialised ASICs. memory/hdd shortages do not phase them.
2) the plan was always that minting income would transition to transaction fees. that this is happening now was to be expected: too much energy is spent, because too many players compete. we all knew that.
3) this correction drives down energy expenditure, and favors renewable energy infrastructure (one third is already hydro, better than world industry average)
