Bitcoin Mining Profitability Drops to $0.14 per Terahash

During the last few days, Bitcoin has suffered a sharp price drop that is dragging down the rest of the cryptocurrencies and tokens. Not only is the price of said cryptocurrency falling, but also the profitability of the bitcoin mining. Currently, according to the Braiins Hashrate Index, for every terahash of power in the Bitcoin network, about 0.14 dollars net is obtained.

Although there is a drop in profitability, the mining power of the network has not been affected. Moreover, the power of the Bitcoin network has exceeded that existing before the sharp drop in the summer of 2021. Remember that then China banned mining due to its high energy consumption and the Bitcoin mining farms moved, hence the drop in the power of the network.

Bitcoin mining profitability falls

The drop in profitability is closely linked to the price of this cryptocurrency. Recently, it has lost a good part of its price, going from $40,000 to hovering around $30,000.

The average net price currently for each terahash of mining power, as we mentioned, is in 0.14 dollars. This figure had not been recorded since December 13, 2020, when it reached $0.13.

This drop in profitability coincides with a slight drop in Bitcoin mining power. Just four days ago the power of the Bitcoin network registered 231 EH/s, its all-time high. Currently, the power is 218 EH/s, which represents a drop of approximately 5%.

Despite these two data, there is no reason to think that what happened in the summer of 2020 can be repeated. negative. It is unlikely that there will be a massive disconnection of equipment.

Although profitability is now low, the normal thing for large mining farms is not to sell immediately, but to hoard and sell what is just for current expenses. The price of bitcoin will rise again sooner rather than later, so the profitability that is low now will be higher in the future.

A value that is very relative

We must bear in mind, on the other hand, that the profitability of Bitcoin mining is very relative. This depends on many factors, such as the equipment used for mining and the cost of electricity. It also greatly influences whether the energy consumed comes from totally or partially renewable energy sources.

The way electricity is in Spain, even with solar panels it is not profitable to get involved in Bitcoin mining. It is already quite expensive and adjusted in profitability to mine Ethereum.

Most of the mining farms that moved from China have gone to the United States, because there are many hydroelectric plants. Some have moved to other regions with low-cost electricity. Normally, the price of energy is prioritized when setting up a large Bitcoin mining farm, as well as the stability of supply.

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