Bitcoin Miners & Losses

Currently I feel it’s easier to buy bitcoin than mine it, because mining bitcoin right now cost a lot. A lot of investment is pumped into mining bitcoin, 5 - 10 years ago it would have been very profitable to mine bitcoin, but today, considering the competition and the price of bitcoin, you might as well just buy it than mine it.

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A mining company called stronghold, is in a better place to tell you just how it’s unprofitable currently to mine bitcoin, this has made them come to the conclusion that it’s wiser to sell off their bitcoin mining equipments to reduce their debts. Considering the loss crypto has gain from its all time high, 65% loss is a no joke, it’s reasonable that these companies have accumulated debts and are looking for ways to lay off these debts.

This period got a of people selling their bitcoin holdings, bills have to get paid, cost of electricity is not free, cost of bitcoin machine maintenance is not free either. No one knows how long this bear season will last, but we are seeing a lot of miners who tried to be long term holders sell off their holdings. This is where proof of stake is a more better option than proof of work. You don’t really need to have a mining machine to earn from proof of stake, you just have to stake your tokens or coins to earn.

I wonder what will happen to the Ethereum miners after the ETH 2.0 Merger, I guess they will have to sell theirs at an extreme discounted price, but if the miners can be used to mine other cryptocurrencies like Bitcoin. With proof of stake, the bear market is the best time to accumulate, but unfortunately with proof of work, the bear market is the time to survive, by either selling the mining machines or selling their holdings.

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Can it be bull season already? huhuhu