{"id":333034,"date":"2022-06-17T13:01:25","date_gmt":"2022-06-17T17:01:25","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=333034"},"modified":"2022-06-17T13:01:25","modified_gmt":"2022-06-17T17:01:25","slug":"how-older-bitcoin-btc-mining-rigs-are-failing-to-earn-a-profit","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/how-older-bitcoin-btc-mining-rigs-are-failing-to-earn-a-profit","title":{"rendered":"How Older Bitcoin (BTC) Mining Rigs are Failing to Earn a Profit"},"content":{"rendered":"

During the current crypto market downturn, older Bitcoin (BTC)<\/a> mining rigs are failing to earn a profit.<\/p>\n

Even if the Bitcoin price drops by another 50%, new generation Bitcoin mining rigs will remain lucrative.<\/p>\n

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Under the Mechanics Behind Bitcoin Mining Systems<\/h2>\n

According to F2Pool data, the profit of various Application Specific Integrated Circuit (ASIC) devices has slipped to a steep decline following Bitcoin’s drop on June 13 below a staggering $24,000. The Antminer S11 and AvalonMiner 921 machines are approaching a dangerous level where it threatens to shut down the entire manufacturing of these machines.<\/p>\n

Bitmain’s Antminer S11, for example, has a peak hash rate of 20.5 Terra-hash per second (TH\/s) and uses 1,530 watts of power.<\/p>\n

Based on the global average power cost, the expense of running an Antminer 211 is 0.13 kilowatt-hours (KW\/h). As a consequence, based on ASIC Miner Value statistics, it would require around $4.5 worth of power each day vs. a daily payout of approximately $2.<\/p>\n

Canaan’s AvalonMiner 921 also costs around $5 per day to operate but earns more than $2 around the same time period.<\/p>\n

According to the “Bitcoin Hashprice Index,” Bitcoin<\/a> miners’ profits have decreased from $0.412 per TH\/s\/day in October 2021 to $0.11 per TH\/s\/day in June 2022, a 75 % loss in eight months.<\/p>\n

According to CoinWarz data, the losses coincided with a remarkable reduction in the Bitcoin mining hash rate over the preceding seven days, from an all-time high of 239.15 EH\/s in a week to 189.72 EH\/s.<\/p>\n

This is a possible indication that miners are lowering their BTC<\/a> production capacity by presumably shutting down inefficient mining rigs, and it is probable that this will continue in the next weeks if Bitcoin does not recover over $25,000 and\/or the mining difficulty changes.<\/p>\n

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Bitcoin Mining Stocks Are Declining<\/strong><\/h2>\n

Following a violent crypto market selloff, the price of Bitcoin fell to its lowest level since December 2020 on June 13.<\/p>\n

BTC’s price<\/a> dropped to $23,707 (according to Coinbase) from a high of $69,000 in November 2021. The losses were caused by fears about increasing interest rates in the United States.<\/p>\n

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Bitcoin mining businesses, which are at the frontline of minting and distributing new BTC currencies, have taken a significant blow as prices have fallen. Canaan’s stock, for example, has dropped by more than 90% since hitting at $39.10 per share in March 2021.<\/p>\n

Similarly, VanEck’s Digital Assets Mining ETF (DAM), which debuted in early March 2022, has dropped 63 % of its value as of June 10, compared to its all-time high of $46.05. According to NASDAQ pre-market statistics, it was poised to open lower on June 13.<\/p>\n

New Generation Bitcoin Rigs Perform Better<\/strong><\/h2>\n

On the upside, numerous traditional mining rigs continue to generate revenue for miners, implying that their owners will be able to survive the downturn in the Bitcoin market.<\/p>\n

This includes the recently released iPollo’s V1, which generates a daily income of roughly $62 versus a $9 power usage in the same period, and Antminer’s S-series machines, which produce daily profits of $4.75–$18 despite Bitcoin’s sub-$25,000 values.<\/p>\n

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Some profitable machines like as Antminer’s S17+, are approaching their shutdown limits (73T). According to Bitdeer statistics, it might become unprofitable if BTC falls below $22,000 in price.<\/p>\n

Read More:<\/strong><\/h3>\n