By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Cassandra Ventura testifies, tells jury freak offs became a job
    Cassandra Ventura testifies, tells jury freak offs became a job
    May 13, 2025
    White South Africans arrive in US after Trump administration granted them refugee status | World News
    White South Africans arrive in US after Trump administration granted them refugee status | World News
    May 13, 2025
    Trump’s Mideast Wish List: + Trillion in Investments – and Some Diplomacy Too
    Trump’s Mideast Wish List: $1+ Trillion in Investments – and Some Diplomacy Too
    May 13, 2025
    Djokovic-Murray coaching partnership ends before French Open | Tennis News
    Djokovic-Murray coaching partnership ends before French Open | Tennis News
    May 13, 2025
    Brussels seeks to sideline Hungary on Russia sanctions renewal – FT — RT World News
    Brussels seeks to sideline Hungary on Russia sanctions renewal – FT — RT World News
    May 13, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    How to Use tsUSDe on TON for Passive Dollar Yield in 2025
    How to Use tsUSDe on TON for Passive Dollar Yield in 2025
    May 13, 2025
    South Korea’s Democratic Party sets up ‘Digital Asset Committee’
    South Korea’s Democratic Party sets up ‘Digital Asset Committee’
    May 13, 2025
    Curve DAO (CRV) price drops as Curve Finance battles DNS attack
    Curve DAO (CRV) price drops as Curve Finance battles DNS attack
    May 13, 2025
    Best crypto to buy: XRP, ADA and Bitcoin Pepe
    Best crypto to buy: XRP, ADA and Bitcoin Pepe
    May 13, 2025
    2025 Cloud Mining Gold Rush: 5 Platforms That Pay While You Sleep
    2025 Cloud Mining Gold Rush: 5 Platforms That Pay While You Sleep
    May 13, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Bitcoin Miners Submerged By Soaring Mining Difficulty
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Cryptocurrency > Bitcoin Miners Submerged By Soaring Mining Difficulty
Bitcoin Miners Submerged By Soaring Mining Difficulty
Cryptocurrency

Bitcoin Miners Submerged By Soaring Mining Difficulty

Published August 10, 2023
Share
4 Min Read
SHARE

Contents
Bitcoin Miners’ Sustained Losses Over TimeMarathon Digital’s Resilience

Bitcoin miners face mounting challenges as the difficulty adjustment in Bitcoin (BTC) mining continues to impact profitability and an energy crisis disrupts operations. 

Created by Satoshi Nakamoto, the difficulty adjustment protocol aims to maintain an average interval of 10 minutes between new blocks, affecting the mining process and costs.

The difficulty adjustment mechanism, a foundational aspect of Bitcoin’s protocol, has a direct influence on mining profitability. As the mining difficulty rises, so do the costs associated with the activity. This has led to a persistent trend of Bitcoin miners operating at a loss, primarily because of the escalating mining expenses.

Bitcoin Miners’ Sustained Losses Over Time

Bitcoin miners have been grappling with a prolonged period of “underwater” mining, where the cost to extract a single unit of the crypto surpasses the average spot price. Since August 2022, the average mining cost for one BTC has consistently exceeded its market value. 

 

Source: MacroMicro

According to data from Cambridge University and MacroMicro cited in a report, on August 8, the average cost to mine one BTC stood at $34,835, while the spot price on August 9 was $29,902. This represents a loss of $4,933 per BTC produced.

The impact of the sustained mining losses is particularly harsh on small and medium-sized crypto miners. These entities struggle to maintain profitability, leading to a decline in market share and hashrate relative to larger miners. 

This intricate interplay between unfavorable conditions aggravates what is commonly referred to as the “economy of scale” effect within the mining sector, further tilting the balance in favor of the more substantial players in the field.

Simultanesouly, the shrinking hashrate from small-scale miners affects the broader crypto landscape. Hashrate is vital for secure and efficient blockchain transactions. A drop in hashrate can create vulnerabilities, risking security breaches. It also slows transaction validation and confirmation, harming user experience and the cryptocurrency’s appeal for daily use.

BTC nearing the halfway mark to $30K territory today. Chart: TradingView.com

Marathon Digital’s Resilience

Meanwhile, Marathon Digital, a prominent Bitcoin mining company, continues to make strides in the face of these challenges. In its second-quarter earnings report, the US-based firm showcased signs of stabilization. Marathon Digital achieved a 54% growth in its hashrate during the quarter, increasing it from 11.5 exahashes per second (EH/s) to 17.7 EH/s.

Marathon Digital recently achieved its mid-year hash rate target of 23 EH/s, showcasing its commitment to maintaining a leading position in the mining space.

Marathon CEO Fred Thiel emphasized the company’s intention to continue its growth trajectory beyond this target, while also acknowledging the industry’s challenges.

As miners navigate through the complexities of rising difficulty levels and energy-related setbacks, their resilience and adaptability will determine their long-term success in the ever-evolving landscape of cryptocurrency mining.

Featured image from Garage Magazine – VICE

#Bitcoin #Miners #Submerged #Soaring #Mining #Difficulty

TAGGED:BitcoinDifficultyminersminingsoaringSubmerged
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Google and UMG May Make an AI to Replicate Artists’ Voices Google and UMG May Make an AI to Replicate Artists’ Voices
Next Article Mike Tauchman, Jameson Taillon lead surging Chicago Cubs past the New York Mets 3-2 at Citi Field Mike Tauchman, Jameson Taillon lead surging Chicago Cubs past the New York Mets 3-2 at Citi Field
- Advertisement -

Latest Post

Cassandra Ventura testifies, tells jury freak offs became a job
Cassandra Ventura testifies, tells jury freak offs became a job
World News
How to Use tsUSDe on TON for Passive Dollar Yield in 2025
How to Use tsUSDe on TON for Passive Dollar Yield in 2025
Cryptocurrency
White South Africans arrive in US after Trump administration granted them refugee status | World News
White South Africans arrive in US after Trump administration granted them refugee status | World News
World News
South Korea’s Democratic Party sets up ‘Digital Asset Committee’
South Korea’s Democratic Party sets up ‘Digital Asset Committee’
Cryptocurrency
Trump’s Mideast Wish List: + Trillion in Investments – and Some Diplomacy Too
Trump’s Mideast Wish List: $1+ Trillion in Investments – and Some Diplomacy Too
World News
Curve DAO (CRV) price drops as Curve Finance battles DNS attack
Curve DAO (CRV) price drops as Curve Finance battles DNS attack
Cryptocurrency
- Advertisement -

You Might Also Like

Zircuit Launches Mainnet Phase 1 And Rolls Out ZRC Airdrop Season 1
Cryptocurrency

Zircuit Launches Mainnet Phase 1 And Rolls Out ZRC Airdrop Season 1

August 5, 2024
French Regulator AMF Amends Crypto Rules To Align With MiCA
Cryptocurrency

French Regulator AMF Amends Crypto Rules To Align With MiCA

August 10, 2023
Fireblocks Discloses ‘Zero Day’ Vulnerabilities Impacting Leading MPC Wallets
Cryptocurrency

Fireblocks Discloses ‘Zero Day’ Vulnerabilities Impacting Leading MPC Wallets

August 10, 2023
SEC reviews Ripple ruling, US bill seeks control over DeFi, and…
Cryptocurrency

SEC reviews Ripple ruling, US bill seeks control over DeFi, and…

July 23, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?