With the sudden collapse of the cryptocurrency market, the bitcoin mining profitability also fell.
This is measured by comparing the cost of mining with the market value of the BTC being mined and is measured in USD per day for 1 THash / s.
THash / s is the unit of measure for computing power for bitcoin mining, and the profitability figure of the past few days has plummeted below $ 0.08 per day for THash / s.
The calculation is an estimate, considering that the cost of mining varies from place to place. In fact, not only do electricity costs vary greatly, but so do the costs of cooling machinery, which is higher in hot places and lower in cold places.
However, if $ 0.08 is just an estimate, the comparison with the previous weeks is ruthless. Until March 6, this figure was almost double, that is, above $ 0.15, while on February 11 it was above $ 0.18.
In the past, it was also much higher, such as at the end of June 2019, when it was almost $ 0.50, while in mid-December 2017 it was close to $ 5.00.
The current level is, in fact, the lowest ever recorded, both because BTC market value has plummeted dramatically, and very quickly, and because hashrate has increased in the meantime, probably in light of Bitcoin's halving in May.
In early March, the hashrate peaked historical and has only slightly decreased since then.
The peak was reached on March 5, with approximately 133 million THash / s, and then fell to 110 on March 14. After the collapse, it fell again, but stopped at 95-100 million THash / s, which is only 25% less. The price dropped from about $ 9,000 to about $ 5,000, which is over 40%, and this caused the collapse of mining profitability.
In fact, due to the high hashrate rate, mining costs have not been significantly reduced, while due to the collapse of the price, the income generated by this activity has been reduced significantly. The result is an inevitable drop in profits for miners, but this could increase again in the coming days if the price of BTC were to rise again, or if the hashrate dropped further.
However, to as bitcoin's halving approaches, many miners are adapting their machinery by replacing old, lower performing machines with new, more efficient and more productive machines with more computing power, the hashrate cannot be drastically reduced, forcing miners to try to reduce costs to remain profitable.
However, it remains to say that even if the price does not rise, some miners may start to stop mining due to reduced profitability. In this case, the hashrate would end up declining, and therefore profitability would increase for those who can continue mining.