Issue #1206: Hashprice at lowest point since November 2020 | Marty's Bent \ stacker news ~bitcoin

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Issue #1206: Hashprice at lowest point since November 2020 | Marty's Bent tftc.io/martys-bent/issue-1206/

35 sats \ 4 comments \ @cryptocoin 10 May 2022 bitcoin

10 sats \ 0 replies \ @BTCMiner 10 May 2022

For reference:

Hashprice, a term coined by Luxor, refers to the expected value of 1 TH/s of hashing power per day. The metric quantifies how much a miner can expect to earn from a specific quantity of hashrate. You can denominate Hashprice in any currency or asset, but we display the metric in terms of USD or BTC (sats). For example

$0.20 per terahash/second per day ($0.20/TH/s/day)

475 satoshis per terahash/second per day (475 sats/TH/s/day)

Hashprice is a function of three inputs: network difficulty, Bitcoin’s price, and transaction fees. Bitcoin’s hashprice will change with every new block added to the blockchain. Luxor's Bitcoin Hashprice Index uses a 144 lagging SMA to account for transaction fees.

Hashprice is positively correlated with changes to Bitcoin’s price and transaction fee volume and negatively correlated with changes to Bitcoin’s mining difficulty.

https://data.hashrateindex.com/chart/bitcoin-hashprice-index

21 sats \ 1 reply \ @jenniferrobert08160 10 May 2022 freebie

What are we going to do

5 sats \ 0 replies \ @BTCMiner 10 May 2022

Well, if you are a marginal miner (i.e., you aren't accessing electricity an a relatively ultra low rate), then you either power down and liquidate your hardware, ... or you mine at a loss to "support the network". Some will mine at a loss. Most will not.

This low cost hardware then ends up being bought by those who have cheap electricity, as they can put that hardware back in service, and mine at a profit.

The price could turn on a dime though, so there probably needs to be more time that passes before more miners power down their equipment, nonetheless liquidate the hardware.

But the outlook is grim if the exchange rate remains down in this range while at the same time large commercial bitcoin miners continue expanding their capacity (which brings the difficulty up). With a lot of older equipment (e.g., S9s) likely facing permanent retirement when the next halving occurs, (in under two years now), those in that category not looking to invest in newer equipment might find now to be a good time to get out.

0 sats \ 0 replies \ @cryptocoin OP 10 May 2022

Welcome to bitcoin. There will be many more days like this in the coming decade. This should be expected when the world is introduced to a new world reserve currency that is completely foreign to the average human. The road to a Bitcoin Standard is going to be extremely bumpy.

I thought I'd draw your attention toward the current hashprice, which hit its lowest point since November 2020 when bitcoin was trading around $15,000 and hashrate was about 100 exahashes lower. We warned you freaks a few weeks ago that the culmination of rising energy prices, a rising mining difficulty environment, and a stagnant bitcoin price would lead to some stress in the bitcoin mining market.

With the potential for stagflation hitting the US economy and the Fed completely out of ammo, the road is coming to an end. Truman Show style. At some point soon the Fed and the Treasury are going to try to kick the can further down the road and it is going to bounce off a wall with a road drawn on it.

When that happens, bitcoin will be there waiting.