Is the Bitcoin Mining Industry Collapsing? Experts answer

Bitcoin mining requires a delicate balance between different parts of a system. Currently, miners must manage capital and operating costs, unexpected repair costs, delays in shipping mining equipment and devices, and unexpected changes in regulations that can vary from country to country and, for the United States, from state to state. Also, they have to deal with the problem of Bitcoin price falling sharply from $69,000 to around $23,000.

To Report Cointelegraph Despite Bitcoin’s price down about 65% from its all-time high, the majority of miners agree to remain calm and continue to collect small amounts of Bitcoin regularly, although this does not mean that the market is now necessarily bottoming out. It has reached itself.

Nick Hansen, the CEO of Luxor Group, which is active in the field of digital currency mining, said at the exclusive roundtable of Bitcoin miners hosted by Cointelegraph:

In the future of public companies [حوزه استخراج] Or at least not only public companies will definitely face a capital crisis. Buying those new ASIC mining devices that are coming to the market would probably require close to $4 billion, and that kind of capital is no longer available to companies.

Hansen further explained:

Hedge funds quickly get into financial trouble. I think it will take 3-6 months for the miners to hit the same day. So, over time you will see who is performing well and who can benefit from this low profit margin [استخراج بیت کوین] May he survive.

When Magdalena Gronowska, a consultant at PRTI, was asked about her challenges and expectations for the future of the Bitcoin mining industry, she replied:

One of the biggest challenges we have had in transitioning to a “carbon-free economy” and reducing greenhouse gas emissions has been the insufficient investment of the public and private sectors in the field of technology and infrastructure. I think the amazing thing about Bitcoin mining is that it offers a whole new way for the industry to finance or subsidize the development of energy or waste management infrastructure. This method goes beyond the common ways of financing taxes or electricity charges; Because it is based on a smart but simple system of economic incentives.

Does Bitcoin harm the environment?

After the panel discussion turned to the environmental impact of Bitcoin mining and the general assumption that Bitcoin’s energy consumption is a threat to the planet, Blockware Solutions analyst Joe Burnett said:

I believe that Bitcoin mining is not bad for the environment. Either way, I think the industry will provide more incentive for energy production, improve grid reliability and resilience, and I think in the long run will lower retail electricity prices.

According to Brent, Bitcoin mining is a boon for cheap energy production, which will be good for everyone in the world.

Also read: Bitcoin mining’s contribution to global carbon emissions is close to zero.

Can industrial Bitcoin mining lead to mass adoption of digital currencies?

Todd Esse, CEO of Hashworks, discussed the impact of Bitcoin mining, the future of the industry, and whether the growth of industrial mining could eventually lead to mass adoption of digital currencies.

I believe the industry will be concentrated in the Middle East, North America, and to some extent in Asia, depending on how productive the extraction can be. This indicates the availability of natural resources and (low) electricity costs in these areas.

However, Hansen disagreed that the growing synergy between major energy and bitcoin mining companies could increase the cryptocurrency’s credibility as an investment asset and facilitate its mass adoption.

He said about this:

No, definitely not, however, whether people know it or not, this is something that changes everyone’s life. Whether you or others are the first or last choice to power this sector. Bitcoin will revolutionize the concept of energy, energy markets, and how it is produced and consumed in the United States, and ultimately, it should significantly improve the human condition over time.