Faced with a bitcoin value of minus 65% from the beginning of the year, many feared that mining could replicate the declining trend of the cryptocurrency.
Well, that was not the case. According to the latest data obtained from bitinfocharts, processing capacity has increased, which has led to the continuation of a long-term trend.
It even reached a peak at the beginning of August, a new record with 55 EH/s, ie fifty quintillion hashes per second.
In the last few days alone, it has fallen to 50, but it is still incredibly high.
According to Morgan Stanley, BTC’s breakeven point for mining is $8600, so above current prices, while other authors reported by Bloomberg think that this value is slightly lower, around 8000.
This hash growth would appear incongruous, as the breakeven has rarely been exceeded in the last three months.
In fact, there would be other factors to consider, some obvious and some less so:
- According to Marco Streng of Genesis Mining, reported by Bloomberg, there is a growth in the size of more efficient miners, at the expense of less efficient ones leaving the market. So we would be in the presence of a concentration accompanied by a progressive turn over;
- Secondly, it is clear that many investments, which were decided when bitcoin was at its highest, came into operation when prices fell.
Unfortunately, in the medium term, the reduction of values will also be felt on hardware manufacturers, as is happening to Nvidia, a well-known manufacturer of graphics cards widely used in mining, especially with altcoins.
The company recorded a significant reduction in sales, as indicated in the report of the second quarter, due to a slowdown in the mining industry.
The company’s CFO, Colette Kress, said the decline was not unexpected, but it was much stronger than they thought, with sales down from 100 million to 18 million dollars
However, this result was much better than last year, as Kress herself says: “Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward”.