Thanks to summer heat waves in North America, Bitcoin miners may begin to register a significant increase in Their revenues. This severe weather event is also expected to have a significant impact Bitcoin hash rate.
Bitcoin miners will see increased profits thanks to reduced competition
Bitcoin miners It is expected to see an increase in profits because many may have to close or cool down their operations due to the extreme heat that usually occurs in North America during the summer. It is known that the United States (US) is home to most of them Bitcoin minersData from the University of Cambridge shows that about 37% of Bitcoin mining operations take place in the United States.
This development is significant considering that Bitcoin miners were already facing earnings pressure, mainly due to… Half happened, cutting their mining rewards in half. Bloomberg mentioned These miners could lose up to $10 billion in revenue after the halving event. As such, the decline in the number of miners during this period will undoubtedly come as a relief to others who see an opportunity to offset some of the expected losses.
Miners also faced increased competition, evident in Bitcoin's hash rate or computing power, which continued to rise throughout the year, reaching an all-time high (ATH) of 835.86 exahashes/second, according to Data From Queen Wars.
Blockware Analysts It also highlighted how summer heat impacts Bitcoin miners, claiming that heat mitigation is the “number one” operational challenge these miners face. The Application Specific Integrated Circuit (ASIC), the device used by miners for mining, is said to be capable of reaching “very high temperatures” without proper cooling measures.
This situation tends to get worse during the summer months, as Blockware notes that many miners are forced to do so Reduce their operations This is partly due to high temperature. Residential energy consumption also reaches high levels during the summer months, enough to “trigger demand response provisions in power purchase agreements between miners.”
BTC is facing a decline in hash rate
Bitcoin hash rate It is also expected to decrease significantly due to the extreme heat wave in the United States. Blocks He noted that during the summer months in North America, the hash rate has remained stagnant or declined in the past two years as miners scaled back their operations. Mining operations.
These Blockware analysts are forecasting “another summer of flat hash rate/hard growth” thanks to heat-induced cuts and continued capitulation of miners caused by “crushed profit margins” from… Half happened. In fact, Bitcoin's hash rate has been declining for a while and is currently at 624.63 ex/s.
At the time of writing, Bitcoin is trading at around $65,400, down over the past 24 hours, according to Data From Coin Market Cap.
Featured image created with Dall.E, chart from Tradingview.com
