Avalon

Bitcoin

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Bitcoin miners are grappling with a financial squeeze as the cryptocurrency's price has plunged to $52,300, leading to a sharp decline in mining profitability. According to data from <a href="https://ultramining.com/en/ratings/f2pool/" rel="noopener noreferrer nofollow">f2pool</a>, only the most advanced and efficient mining <a href="https://ultramining.com/hardware/" rel="noopener noreferrer nofollow">hardware</a> models are currently breaking even or making a profit. Many miners with older, less efficient models find themselves operating at a loss, which could have significant implications for the industry, according to <a href="https://x.com/f2pool_official/status/1820334784435892474?t=Fnj_bipihPrya2xM_TVKQg&amp;s=19" rel="noopener noreferrer nofollow">F2pool_official</a>.
<figure class="wp-block-image"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeZxDv7C0I02tyYY2h930Qyrnj4OvRfTeFN2lsjb_JoMjlsxbf6JSNhQepEzZqJcdp2q7cv7NvbEJEB5ym8Fn0ppsYgBSDqjb9tE3xopIfYWrhqWVj3XJlRgjtGD2ZIe3ayPE1i_7BZGwvOo1dc3sXldbqO?key=APLzgIEH5rcVrKjwGcwD3w" alt="">
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The cost of <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a> plays a crucial role in mining profitability. With electricity rates set at $0.07 per kilowatt-hour, miners face increasing operational costs that are becoming difficult to offset due to Bitcoin's falling price. As per f2pool's recent data:
- The Antminer S21 Hyd, Antminer S21, Avalon A1466I, Antminer S19XP Hyd, and Antminer S19XP models are still profitable, even at the current Bitcoin price of $52,300.
- The Antminer S21 Hyd achieves the lowest break-even Bitcoin price at $31,166, while the Antminer S21 follows closely at $34,978.
- Older models such as the Antminer S19j Pro, Whatsminer M30S++, and AvalonMiner 1246 have fallen below their break-even thresholds, making them unprofitable to operate under current market conditions.
The image from f2pool highlights the electricity cost rates for various <a href="https://ultramining.com/en/hardware/" rel="noopener noreferrer nofollow">Bitcoin mining hardware</a> models under three different Bitcoin price scenarios: $52,000, $54,000, and $56,000. At the current Bitcoin price of $52,300, the electricity cost rate for even the most efficient models is at or above 77%, leaving little margin for profit.
For instance:
- The Antminer S21 Hyd and S21 maintain profitability with electricity cost rates of 71% and 77%, respectively.
- The Avalon A1466I remains viable with a rate of 80%.
- Conversely, less efficient models, such as the <a href="https://ultramining.com//en/hardware/antminer-s19/" rel="noopener noreferrer nofollow">Antminer S19</a> Pro, face cost rates of up to 126%, pushing them into loss-making territory.
The declining profitability is causing some miners to consider shutting down or selling their equipment. This could lead to a reduction in the overall <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a>, impacting the security and stability of the Bitcoin network. A decrease in hashrate may make the network more vulnerable to attacks and reduce its efficiency in processing transactions.
The hashrate has already dropped from a peak of 677 exahashes per second (EH/s) on July 25 to 629 EH/s as of August 4. This decrease of 48 EH/s indicates that miners are already feeling the strain and may be shutting down operations to cut losses.

Bitcoin Mining Faces Crisis as Prices Drop and Costs Rise

Ultramining_Eng

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