Bitcoin Mining Becomes Less Profitable for Retailers and Favours Big Corporations
A new research from Diar shows that Bitcoin (BTC) miner revenues for the first six months of 2018 have already surpassed results in 2017, but for the first time has become unprofitable for most miners when factoring in the retail price of electricity.
Diar’s research suggests that electricity prices, along with greater involvement in the space from big corporations, are pushing small time mining operations out of the market.
As per the Diar report, the rewards and fees for BTC miners have already reached $4.7 billion in the first three quarters of 2018, around $1.4 billion more than the profits in all of 2017. Miners still gain 54,000 Bitcoin monthly, the outlet continues.
But to the disappointment of small-time mining operations, the growing cost of electricity to support increasingly advanced computing mechanisms for mining are turning Bitcoin mining into a losing investment.
This is a big change for Bitcoin miners, essentially making it impossible for a miner to make money mining Bitcoin under normal circumstances.
Keeping Bitmain’s dominance on the Bitcoin network in mind, the company must keep mining profitable for retailers–controlling its hashing power at all times and shifting operations between its Chinese and U.S. units to ensure profitability.
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