When the Bitcoin Rush Goes from Gold to Gold‑mine
Spare a thought for the beleaguered miners, because the crypto scene has flipped from a fireworks show to a soggy fireworks tent.
A Wild Ride in One Year
Late 2021 was the era where every miner could think of themselves as a farmer sowing in a digital field. They’d plug in powerful rigs, crack mind‑bending math puzzles, and sell the freshly minted coins at sky‑high prices.
Fast‑forward to this year, and the global revenue from Bitcoin mining has slammed down to about $17.2 million a day (roughly S$25 million). That’s a dramatic 72 % drop from the $62 million peak last November, according to Blockchain.com.
- Bitcoin’s value: Roughly $19,000 today. No breakout above $25,000 since August.
- Historical high: $69,000 in November 2023.
The Dragon of Costs
Joe Burnett, a savvy analyst at Blockware Solutions, explains that miners are feeling a tighter squeeze: “Bitcoin miners have continued to watch margins compress – the price of Bitcoin has fallen, mining difficulty has risen, and energy prices have skyrocketed.”
Miners who splurged on pricey rigs now have the hard reality that the expected returns are far slimmer. Each new miner who joins the network makes the puzzles harder, forcing everyone to use even more computational power—essentially paying more for less.
- Profit per terahash per second: Ranged between $0.119 and $0.070 a day since July.
- Peak last year: $0.45 per terahash per second.
Will Miners Keep Mining?
Even the Luxor Hashrate Index, which estimates mining revenue potential, is down almost 70 % this year. That suggests the uphill battle might be a long one.
For those holding on to their expensive rigs, the main question becomes: Will the price bounce back enough to pay off the investment, or is this a saga of bananas in a basket of tech?*
Bottom line? Bitcoin mining that once sounded like a gold rush now feels more like mining for a pot of oil in a tarpit. It’s a story of high hopes, unexpected hardships, and a community that’s still willing to laugh—even at a price tag that keeps dropping.
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2140: The Final Bitcoin?
Crunch Time for Crypto‑Miners
It’s a rough ride for the folks running the rigs that keep the network humming.
Since the start of the year, the stocks of heavy‑weights like Marathon Digital, Riot Blockchain, and the Valkyrie Bitcoin Miners ETF have slumped more than 60 percent. And just last week, Compute North – the big‑name mining‑data‑center operator – hit the ground floor and filed for bankruptcy.
But hey, bitcoin’s not over for a while. The mining “cap” isn’t expected to hit its final nail until 2140 – that’s over a century from now. So it’s a long‑term game, and even the downturn presents a buying window.
“Buy Low, Win Big” – the Sazmining Man
“The best time to jump in is when the market’s a bit of a dumpster fire,” says William Szamosszegi, CEO of Sazmining Inc. The company’s aiming to open a renewable‑energy‑powered bitcoin farm. He points out that the rigs that cost $10,000 earlier this year are now on sale for 50–75 percent off.
This price dip isn’t just a rumor – it’s affecting actual sales. Consider the widely used S19J Pro: it averaged about $10,100 back in January, but today you can snag it for roughly $3,200. According to analysts at Luxor, bulk‑order prices for certain machines dipped 10 percent last week alone.
Energy‑Efficiency Is the New Black
Crypto‑mining guru Chris Kline, co‑founder of Bitcoin IRA, warns that staying efficient with energy use is no longer optional. “Miners have to be hyper‑focused on energy efficiency, to slash costs and dodge the risk of climate‑change regulations,” he said.
“Even if the balance sheet looks grim, miners will grope around to stay afloat. They’re juggling units, world‑class energy prices, and the inevitable regulatory storm,” he added.
Takeaway
- Stocks plummet → hardware prices tumble.
- When prices dip, that’s your cue to buy.
- Energy efficiency = survival.
- Long‑term horizon: 2140 is still ahead.
So, if you’re a miner or a ticker‑taker looking to get in the act, remember: the last Bitcoin won’t see the light of day for over a century, but the last chance to buy cheap is now.
