Bitcoin Mining Currently In 2022
Profitability has been down due to the hashrate growing and difficulty and also the big factor, the current price doldrums. Hopefully soon we see a big upswing and out of this slump we have been in.
How Bitcoin Mining Profitability Could Point To Capitulation Still Ahead
Bitcoin mining profitability has been heavily impacted by the declining prices of the digital asset. Looking at some of the most popular miners, the Antminer S9 and the Antminer S19, there is a clear indication that the profitability from mining activities has been declining.
The Antminer S9 would cost a miner $26,000 worth of electricity to mine a single bitcoin, while its counterpart the Antminer S19 would cost $31,000 worth of electricity to give the same result. This is putting the price per kWh at $0.05. It means that electricity running costs alone are costing more than half of the realized revenue from mining a bitcoin.
In total, an Antminer S9 would give a cash flow per BTC of around $15,000 going by the current price of the digital asset at $41,800. As for the Antminer S19, this number would come out to about $9,000 to $10,000 at current prices.
What this shows is how the stagnating price of bitcoin is putting miners’ profitability under intense pressure. Coupled with the fact that the total network hashrate has skyrocketed since the China ban on mining, it has also had a negative impact on mining profitability. And if this does not ease up soon, it will continue to put significant pressure on profitability. The only way to then offset this pressure would be for there to be an increase in BTC’s price.