As hash rate and energy costs grow, bitcoin mining becomes less profitable
Welcome to Bitcoin. There will be many more days like this in the next decade. It is to be expected that a new global reserve currency will be introduced to the world, completely alien to the average human being. The road to a Bitcoin standard is going to be extremely bumpy.
So, I thought I'd cause you to notice the ongoing hash cost, which hit its absolute bottom since November 2020 when bitcoin was exchanging around $15,000 and hash rate was around 100 exahashes lower. We cautioned you cracks half a month prior that the climax of rising energy costs, a rising mining trouble climate and a stale bitcoin cost would prompt some pressure in the bitcoin mining market. Indeed, today we wind up in a climate where energy costs appear to be prepared to continue to ascend through the late spring, trouble proceeds to climb and the cost of bitcoin is crashing (and could keep on falling). This ought to pull forward some unrest in the mining area.
If this price action scares you, you need to take a deep breath and remember the fundamental utility bitcoin offers the world. Bitcoin is a distributed and peertopeer treasury system with a fixed supply of 21 million that provides people around the world with a monetary system that is completely separate from the parasitic system that is entirely dependent on cheap debt and the ability to clear the jar along the path. With the potential for stagflation hitting the US economy and the Federal Reserve completely out of ammunition, the road is coming to an end.At some point, the Fed and Treasury will try to hit the bottom of the box and bounce off a wall with a route marked on it.
Whenever that occurs, Bitcoin will there stand by. Delivering blocks and working with shared exchanges for anybody who can get to the product to get and communicated exchanges.