{"id":474199,"date":"2022-07-15T07:07:37","date_gmt":"2022-07-15T04:07:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/btc-mining-costs-reach-10-month-lows-as-miners-use-more-efficient-rigs\/"},"modified":"2022-07-15T07:07:37","modified_gmt":"2022-07-15T04:07:37","slug":"btc-mining-costs-reach-10-month-lows-as-miners-use-more-efficient-rigs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/btc-mining-costs-reach-10-month-lows-as-miners-use-more-efficient-rigs\/","title":{"rendered":"# BTC mining costs reach 10-month lows as miners use more efficient rigs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bbeb07d24c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bbeb07d24c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-mining-costs-reach-10-month-lows-as-miners-use-more-efficient-rigs\/#%E2%80%9D_BTC_mining_costs_reach_10-month_lows_as_miners_use_more_efficient_rigs_%E2%80%9C\" >&#8221; BTC mining costs reach 10-month lows as miners use more efficient rigs &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_BTC_mining_costs_reach_10-month_lows_as_miners_use_more_efficient_rigs_%E2%80%9C\"><\/span>&#8221; BTC mining costs reach 10-month lows as miners use more efficient rigs &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>The cost of mining one Bitcoin (BTC) has fallen to ten-month lows as mining hardware becomes more efficient, and difficulty has dropped 6.7% since its May peak.<\/p>\n<p>On July 13, strategists from JPMorgan led by Nikolaos Panigirtzoglou told investors that Bitcoin production costs have fallen to around $13,000 from $24,000 at the beginning of June. <\/p>\n<p>This is the lowest it has been since September 2021, according to the analysts citing a chart from Bitinfocharts, and comes as mining difficulty has fallen from its May highs of 31.25T to 29.15T. <\/p>\n<p>Lower Bitcoin production costs can potentially ease miner selling pressure and improve profitability. However, the strategists were still bearish, stating \u201cthe decline in the production cost might be perceived as negative for the Bitcoin price outlook going forward,\u201d according to<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-07-14\/jpmorgan-says-bitcoin-cost-of-production-may-be-down-to-13-000?sref=323RPL5z\"> Bloomberg<\/a>.<\/p>\n<p>They added that the production cost is perceived by some analysts as the lower bound for BTC price range in a bear market. Several analysts have predicted BTC prices to fall to around $13,000, which would align with the 80%+ drawdowns in the previous two bear markets. Bitcoin is currently trading down 70% from its November all-time high.<\/p>\n<p>Bitcoin production cost peaked just after the price peaks in April and November 2021 and has fallen back as markets did, so it is correlated but lags price movements.<\/p>\n<p>The drop in production cost has been linked to a decline in electricity consumption. <\/p>\n<p>Cambridge University\u2019s Bitcoin energy consumption index currently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ccaf.io\/cbeci\/index\">reports<\/a> that the network\u2019s estimated daily power demand is 9.59 Gigawatts. This is a decline of 33% over the past month and is down 40% from the 2022 peak demand of almost 16 GW in February.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/73525193-a966-4cac-84a6-433fd5254604.jpg\"><figcaption style=\"text-align: center;\">Source: Cambridge University<\/figcaption><\/figure>\n<p>Additionally, a significant number of miners have powered down older, more inefficient mining rigs as they have become unprofitable to operate due to surging energy prices and a collapse in BTC prices.<\/p>\n<p>According to<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.asicminervalue.com\/\"> Asicminervalue<\/a>, the Bitmain Antminer E9, just released this month, is one of the most efficient units on the market, with a maximum hash rate of 2.4Gh\/s for a power consumption of 1,920 Watts.<\/p>\n<p><strong>Related:<\/strong><strong> <\/strong><strong>Bitcoin miners sell their hodlings, and ASIC prices keep dropping \u2014 What\u2019s next for the industry?<\/strong><\/p>\n<p>On the flip side, miners have been hit with the double whammy of increasing global energy prices and tanking BTC prices. This has caused mining profitability to slump by 63% since the beginning of the year. Bitinfocharts<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitinfocharts.com\/comparison\/bitcoin-mining_profitability.html#1y\"> reports<\/a> that mining profitability is currently at its lowest levels since October 2020 at $0.095 per day per terahash per second.<\/p>\n<p>However, the fall in production cost may prevent a further fall in profitability and could even reverse that trend in the coming months.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/btc-mining-costs-reach-10-month-lows-as-miners-use-more-efficient-rigs\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; BTC mining costs reach 10-month lows as miners use more efficient rigs &#8220; The cost of mining one Bitcoin (BTC) has fallen to ten-month lows as mining hardware becomes more efficient, and difficulty has dropped 6.7% since its May peak. On July 13, strategists from JPMorgan led by Nikolaos Panigirtzoglou told investors that Bitcoin&#8230;<\/p>\n","protected":false},"author":1,"featured_media":474200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYjFiZjk1YmMtY2MwMS00NzAyLTlmNGYtZTliNjU4MDM2ZmVhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,78717,75042],"class_list":["post-474199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-energy-consumption","tag-mining"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/474199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=474199"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/474199\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/474200"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=474199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=474199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=474199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}