{"id":14690,"date":"2022-11-21T18:11:47","date_gmt":"2022-11-21T18:11:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-miners-face-a-squeeze-as-btc-production-cost-remains-well-above-spot-market-value-mining-bitcoin-news\/"},"modified":"2022-11-21T18:11:47","modified_gmt":"2022-11-21T18:11:47","slug":"bitcoin-miners-face-a-squeeze-as-btc-production-cost-remains-well-above-spot-market-value-mining-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-miners-face-a-squeeze-as-btc-production-cost-remains-well-above-spot-market-value-mining-bitcoin-news\/","title":{"rendered":"Bitcoin Miners Face a Squeeze as BTC Production Cost Remains Well Above Spot Market Value \u2013 Mining Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Bitcoin miners are dealing with lots of pressure following the recent difficulty adjustment increase on Nov. 20, 2022, and the leading crypto asset dropping further in value against the U.S. dollar following FTX\u2019s collapse. Statistics recorded this past weekend show that bitcoin\u2019s average cost of production has been a lot higher than bitcoin\u2019s USD value recorded on spot market exchanges. <\/strong><\/p>\n

Statistics Show Bitcoin\u2019s Cost of Production Is a Lot Higher Than the Leading Crypto Asset\u2019s USD Value<\/h2>\n

On Sunday, Bitcoin.com reported<\/a> on Bitcoin\u2019s difficulty rising by 0.51% at block height 764,064, and the increase pushed the difficulty to an all-time high at 36.95 trillion. After that difficulty transition, data shows the overall global hashrate dropped from 317 exahash per second (EH\/s) to 233 EH\/s.<\/p>\n

The hashrate is currently coasting along at 250.59 EH\/s, according to records<\/a> from coinwarz.com. At the same time, BTC<\/a>\u2019s fiat value dropped a great deal after FTX collapsed and filed for bankruptcy protection.<\/p>\n

Statistics<\/a> on Nov. 21, 2022, show that the cost of bitcoin production is much higher than BTC<\/a>\u2019s current USD spot market value. The metrics recorded by macromicro.me indicate that the average mining cost is $19,662 today, while the USD value of BTC<\/a> is recorded at 16,120 nominal U.S. dollars per unit.<\/p>\n

\"Bitcoin
Macromicro.me statistics on Nov. 21, 2022.<\/figcaption><\/figure>\n

The macromicro.me statistics indicate that bitcoin\u2019s price in comparison to the cost of BTC<\/a> production has been lower since Oct. 6, 2022. Macromicro.me says that the web portal uses data collected from Cambridge University in order to \u201cfind out the average mining costs of bitcoin.\u201d<\/p>\n

\u201cWhen mining costs are lower than bitcoin\u2019s market value, more miners will join,\u201d the macromicro.me website details. \u201cWhen mining costs are higher than miner\u2019s revenue, [the] number of miners will decrease.\u201d<\/p>\n

\"Bitcoin
Braiins.com statistics on Nov. 21, 2022.<\/figcaption><\/figure>\n

In addition to the metrics showcased on macromicro.me, Glassnode\u2019s hash price chart<\/a> indicates that the hash price is at an all-time low. The chart highlights a \u201cmetric for estimating daily miner incomes, relative to their estimated contribution to network hash-power,\u201d Glassnode\u2019s description notes.<\/p>\n

Analytics<\/a> from braiins.com also indicate that the current hash value is lower than the current hash price. Similar to macromicro.me\u2019s stats, braiins.com metrics show the change occurred around Oct. 6, 2022. If bitcoin prices don\u2019t increase or if they drop lower, a number of BTC<\/a> Mining operations will face a squeeze out of the industry if they are not facing this situation already.<\/p>\n

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Bitcoin<\/a>, Bitcoin (BTC)<\/a>, Bitcoin mining<\/a>, braiins.com<\/a>, BTC<\/a>, BTC Mining<\/a>, BTC Production Cost<\/a>, data<\/a>, glassnode<\/a>, Hash Price<\/a>, Hash Value<\/a>, Macromicro.me<\/a>, metrics<\/a>, mining bitcoin<\/a>, Mining BTC<\/a>, mining data<\/a>, mining metrics<\/a>, Production Cost<\/a>, Statistics<\/a>, Stats<\/a><\/div>\n<\/div>\n

What do you think about bitcoin\u2019s spot market value dropping below the crypto asset\u2019s cost of production? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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