Oct 9, 2018 at 18:04
Oct 10, 2018 at 16:10 UTC
Crypto Mining May Lose Its Profit Value In The Near Future
A pretty big news has broken which is bound to take the crypto world by storm. Weekly crypto outlet Diar has reported that crypto mining could become less profitable in the near future. The revenues that crypto mining has raked in already are massive and has already surpassed the records made in 2017, but miners themselves claim that they predict very little profit in the near future.
In the first three quarters of 2018 alone, rewards and fees for BTC miners have shot through the roof and made a massive $4.7 billion which is almost $1.4 billion more than the profits made in 2017. However, mining may decline in profits in the near future. On an average, miners gain 54,000 Bitcoin monthly but the electricity costs are on the rise. The big shot mining entities may see a fall in their revenues if they have to keep up with the constantly increasing prices of electricity.
According to the Diar report, since September, miners’ payment of retail electricity prices have taken a turn towards unprofitability for the very first time.
The Diar report states:
“Bitcoin mining has, at least for now, and most likely in the future, moved into the court of bigger players with deep pockets.”
Talking about Coinbase in the report, Diar states that their dollar volumes have gone down to a 1 year low in the third quarter of 2018. Although it still looks better than what it was last year, around the same time. Major companies like Bitmain, may start acting like “swing producer” and start opening up mining pools in the US to keep the network of profitable miners growing.
Some exchanges like Bitstamp have evidently seen a fall in their trading volume of BTC. Last year it was around $4.6 billion, whereas this year it is $4.4 billion.