We know that the whole crypto market has entered a bear cycle. The current market slump has been driven by both internal and external factors. For example, the Fed has tightened the US monetary policy to curb the excessively high global inflation. As a result, financial markets around the world have declined, and the crypto market is no exception. Meanwhile, the collapse of LUNA and its ecosystem has brought extreme market panic, leading to further declines.
During today’s crypto winter, players in the crypto space have all been, more or less, affected, and miners, who are deeply engaged in the blockchain sector, are inevitably hit hard.
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We know that running mining rigs consumes electricity, which comes at a certain cost. Relatively speaking, the cost of electricity is stable, and miners could profit when the mining revenue covers costs that include the electricity fee. However, when the mining revenue fails to cover the electricity cost, miners will only suffer losses if they choose to keep running their mining rigs. Under such circumstances, miners have no choice but to shut down their mining rigs, and the tipping point, the crypto price that leads to counterproductive mining, is referred to as the shutdown price of mining rigs.
As Bitcoin falls below $30,000, models including Antminer S9 ($28,972.93), Avalon A821 ($31,942.07), and Ebit Miner E10 ($31,355.71) have all fallen below the shutdown price, and mining rigs like Antminer S9j and Avalon A921 are also on the verge of their shutdown prices.
That said, does mining during a crypto bear always lead to losses?
Not necessarily. Miners could still profit as long as their mining rigs do not fall below or reach the shutdown price. Meanwhile, miners can also join ViaBTC Pool and apply for the Ambassador Program by referring ViaBTC to their friends. ViaBTC Ambassadors can get 20% referral commissions on fees as long as they stay as Ambassadors. Moreover, the more friends Ambassadors invite, the higher the hashrate, and the more commissions they will get.
Having been dedicated to the crypto industry for 6 years, ViaBTC Group has always aimed to become a provider of infrastructure services in the crypto space. In addition to a mining pool, the group now also boasts other four key business segments, including a cryptocurrency exchange, a wallet, a public chain, and an investment branch, which makes it one of the best-established blockchain firms out there. In particular, ViaBTC Pool, a world-leading all-inclusive mining pool, provides mining services for over 1 million users across more than 130 countries and regions, with billions of dollars’ worth of cumulative mining output.
In a bear market, we should focus on development over the long run. As the blockchain industry evolves and becomes more widely accessible, apart from retail investors, some institutional investors and listed companies are also venturing into the industry, and certain countries have adopted Bitcoin as their legal tender. Meanwhile, looking back, we have noticed that the crypto market has always spiraled upwards. In addition, today’s market has stepped up in terms of technical maturity, market scale, and user data.
In particular, the rise of crypto categories such as DeFi, NFT, and the metaverse has lifted the crypto sector to a new level and introduced the market to more people across the globe. Even global influencers like Elon Musk have also promoted the growth of the crypto industry to a certain extent.
Though the market remains sluggish, it will surely flourish in the future. Always focusing on long-term market prospects, ViaBTC has gone through 6 years of ups and downs in the crypto industry and earned extensive user recognition. Welcome to keep track of the latest official announcement on the ViaBTC website, as well as its official Twitter/Instagram accounts and social media groups, and join this crypto feast.
The BTC hashrate did not fall but reach a new high recently despite bearish market conditions. According to the Hashrate Curve provided by BTC.COM, we can tell that the BTC hashrate has kept rising during the past year, which indicates that miners are still optimistic about the market prospect.
Moreover, Bitcoin has earned increasing recognition in global financial markets. Other than El Salvador’s adoption of Bitcoin as its legal tender, the Central African Republic (CAR) has also followed suit, as the president’s office said on April 27, making it the first African country and the second in the world to do so. Predictably, more countries will integrate Bitcoin into their economy as their legal tender. Its importance in global financial markets will continue to rise, and no individual or organization could curb its growth.
PoW-based cryptos such as Bitcoin are generated via mining, and miners will always be an essential link no matter how the market may change. Though countries like China have banned crypto mining, many other countries still support crypto mining, and some governments stay neutral on the matter, neither banning crypto mining nor supporting it. As China continues to tighten its crypto policies, mining farms deployed in the country have been relocated to countries including the United States, Canada, and Russia, and the global distribution of mining farms has become increasingly decentralized. To some extent, the decentralized distribution of mining farms is great news because it enhances the security of crypto networks like Bitcoin.
In short, for miners, one prudent strategy is to stock up on more cryptos in the bear market and wait for the next bull. After all, this is not the first crypto winter, and we need to stay calm especially under today’s circumstances.