Miners and companies leave the cryptocurrency market in droves because it doesn’t make a profit

Deepak Gupta June 26, 2022
Updated 2022/06/26 at 8:22 AM

As we have been reporting over the last few weeks, the cryptocurrency segment is going through a less good phase, with the valuation of currencies plummeting, which has left investors on alert.

In this sense, this reality is triggering several consequences, including the fact that miners and companies dedicated to this sector are leaving the cryptocurrency market in droves, as their mining is no longer profitable.

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Miners and companies say goodbye to the cryptocurrency market

The cryptocurrency market is not in its best days, and specifically Bitcoin, which is the most popular digital currency in the world, had a fall last Saturday (18), below $ 20,000, presenting the lowest value since the month of December. of 2020. No at the time of writing this articlethis cryptocurrency is worth $21,347.03.

As such, we are now seeing some consequences and reactions to this drop in digital currencies. Recently, for example, we reported that there was a massive sale of used graphics cards for cryptocurrency mining.

And the latest news goes even further and indicates that, also due to the increase in the price of electricity, miners and companies that invest in the cryptocurrency segment are now abandoning that same market en masse, as it has ceased to exist. be profitable.

As we can see from the graph above, energy consumption, in terms of TWh, referring to Bitcoin had an interesting climb between mid-2021 and early 2022. But after some stable time, this same consumption suffered a very sharp drop in Last times.

At the peak of around 200 TWh, this consumption was as much as spent by entire countries, such as Argentina. Another interesting comparison is that this same consumption was the same amount of electricity consumed by all data centers around the world within a year.

But, at the moment, even the big companies that bet on the practice of mining digital currencies, are leaving this sector because they consider that it is currently a great challenge where they are not able to make a profit and face daily expenses.

Also the energy consumption related to Ethereum ends up having the same characteristics. As we can see in the chart above, in January there was a significant rise, which ended up slowing down and then falling sharply in recent weeks.

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