Bitcoin mining is one of the ways to earn money on cryptocurrency. However, today the profitability of mining the Bitcoin cryptocurrency in many regions tends toward zero, miners' income has fallen several times over, and many companies have even suspended their mining activities due to the unprofitability, and often even due to the loss-making nature, of the very process of cryptocurrency mining.
As a rule, the largest part of the costs in Bitcoin mining falls on electricity. And it is still most profitable to mine coins in China. For example, under favorable mining conditions in China, mining one BTC costs $2,400.
Given the decline in mining profitability, there is a threat that manufacturers of more expensive equipment will wind down their activities. However, so far this is not happening, and in fact over the past year the production of miners in the Czech Republic, the USA and Iceland even grew. However, these are the final results for the whole year, and as we recall, the beginning of 2018 was positive and inspired confidence in the cryptocurrency sphere. And today Bitcoin costs less than it takes to mine it. And the report by JPMorgan analysts says that the fall in the BTC price from 6 thousand below 4 significantly reduced the margin for miners from most regions.
If the capitulation of the majority of Bitcoin miners does occur, then the miners remaining on the market will rejoice at the reduction in costs, since in the absence of competition they will be able to mine more BTC with the same energy expenditure. Analysts have calculated that if only Chinese miners remain on the mining market, then the cost of mining the Bitcoin cryptocurrency will fall to $1,260 per coin.
Due to the decline in the profitability of coin mining, some miners still continue to mine Bitcoin even at a loss, while some miners have begun to look for ways to diversify. For example, among miners the renting out of equipment to projects that work in fields with increased computing power needs is gaining popularity.
