Monday Mining Metrics: Difficulty Under-Pacing Previous Epochs
Bitcoin Mining Update - 9/9/2024
Mining Difficulty to Jump 5%
Bitcoin mining difficulty is poised for one of the largest positive adjustments since April’s halving. With the Bitcoin price being down ~25% from its March high, this difficulty increase is most certainly not due to a heightened appetite for mining from sidelined participants. Rather, positive adjustment is the result of two functions:
Less heat-induced curtailments/downtime as North American miners enter the cooler months of autumn
Capital efficient miners upgrading to newer-generation ASICs, expanding operations ahead of bull market
After this adjustment, mining difficulty will, in total, be ~8% higher than where it was at the time of the halving. Right now, hashrate is growing at a slower pace than it did at this point during previous cycles. It’s obviously early into the cycle, but our hypothesis on slowing hashrate growth is playing out so far.
The aforementioned hypothesis is discussed in our latest research report: “Analyzing the Relationship of Bitcoin Price & Hashrate.”
We provide a thorough breakdown of the cyclicality in the Bitcoin mining industry and how this creates opportunities. You can download the 27-page PDF for free!
Cost to Mine 1 Bitcoin:
With the Bitcoin price down and difficulty gradually increasing, mining revenue is getting crunched. Hashprice is poised to drop below $0.04/Th/Day after the adjustment. Ultimately, this highlights the importance of mining with the latest-generation ASICs - something we’ve discussed all year long.
Antminer S21’s and S21 Pro’s mining at a rate of $0.078/kWh are still producing 1 BTC for less electricity than what it costs to buy 1 BTC on the spot market.
Blockware Direct ASIC Pricing with Hosting
We have 100s of ASICs available for purchase right now on the Blockware Marketplace! Machines are sold turnkey which means you’ll be hashing as soon as your BTC payment is confirmed on-chain! Click here to start mining today.
For those seeking to purchase ASICs in bulk (with or without hosting), contact sales@blockwaresolutions.com or reach out here. Buying machines in bulk gives you access to better per-unit pricing than buying individual machines!
Contact sales@blockwaresolutions.com or reach out here.
All content is for informational purposes only. This Blockware Intelligence Newsletter is of general nature and does consider or address any individual circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal, business, financial or regulatory advice. You should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.