Crypto Mining Becomes Less Profitable, Shifts Towards ‘Bigger Players,’ Report Shows

in #crypto5 years ago

1539131239005.jpg
Crypto Mining Becomes Less Profitable, Shifts Towards ‘Bigger Players,’ Report Shows
Crypto Mining Becomes Less Profitable, Shifts Towards ‘Bigger Players,’ Report Shows
News

Bitcoin (BTC) miner revenues for the first six months of 2018 have already surpassed results in 2017, but the miners themselves see little profit, weekly crypto outlet Diar reports Monday, October 8.

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.

However, mining is gradually becoming profitable only for “big guns” as electricity prices are constantly increasing. Diar assessments show that the miners paying retail electricity prices have shifted towards unprofitability for the first time this September.
1539131517248.jpg
Revenue and profit ratio for miners in 2018. Source: Diar

The Diar report notes:
“Bitcoin mining has, at least for now, and most likely in the future, moved into the court of bigger players with deep pockets.”

However, even major companies might have to adjust their business, according to Diar. For instance, Chinese mining giant Bitmain, which received 95 percent of its revenue in 2018 from the sale of miners, is “acting like a swing producer” and opening pools in U.S. in order to keep the network profitable for miners.

As Diar wrote in the same weekly issue, San Francisco-based crypto exchange Coinbase’s U.S. dollar volumes have hit a 1-year low in the third quarter of 2018. However, in comparison to the same period last year, BTC trading volume is now slightly higher ($5.4 billion against $4.6 billion in 2017). In the meantime, exchange Bitstamp’s trading volume of BTC was around $4.4 billion, while it was at around $4.6 billion in the same period last year.

As Cointelegraph has previously reported, Bitmain announced a $500 million investment in August in blockchain data center and mining facility in Texas. The construction was estimated to be launched in early 2019, with plans to bring in 400 local jobs in the first two years.

Sort:  

Great research g7sparrow! Thanks for the support as well! Hope all is well - hansenatortravel

Congratulations @g7sparrow! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You got your First payout

Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @steemitboard:

SteemitBoard Ranking update - Steem Power, Followers and Following added

Support SteemitBoard's project! Vote for its witness and get one more award!

Congratulations @g7sparrow! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

Award for the number of upvotes

Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @steemitboard:

SteemitBoard Ranking update - Resteem and Resteemed added

Support SteemitBoard's project! Vote for its witness and get one more award!

Congratulations @g7sparrow! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You made more than 1250 upvotes. Your next target is to reach 1500 upvotes.

Click here to view your Board of Honor
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @steemitboard:

Meet the Steemians Contest - The results, the winners and the prizes
Meet the Steemians Contest - Special attendees revealed
Meet the Steemians Contest - Intermediate results

Support SteemitBoard's project! Vote for its witness and get one more award!

Congratulations @g7sparrow! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You made more than 1500 upvotes. Your next target is to reach 1750 upvotes.

Click here to view your Board of Honor
If you no longer want to receive notifications, reply to this comment with the word STOP

Support SteemitBoard's project! Vote for its witness and get one more award!

Congratulations @g7sparrow! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 1 year!

Click here to view your Board

Do not miss the last post from @steemitboard:

Carnival Challenge - Collect badge and win 5 STEEM
Vote for @Steemitboard as a witness and get one more award and increased upvotes!

Congratulations @g7sparrow! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 2 years!

You can view your badges on your Steem Board and compare to others on the Steem Ranking

Do not miss the last post from @steemitboard:

Use your witness votes and get the Community Badge
Vote for @Steemitboard as a witness to get one more award and increased upvotes!

Coin Marketplace

STEEM 0.37
TRX 0.12
JST 0.040
BTC 70162.45
ETH 3540.43
USDT 1.00
SBD 4.79