Bitcoin miners struggle with crypto's price decline, rising energy costs, and increase in mining difficulty

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Bitcoin miners struggle with crypto's price decline, rising energy costs, and increase in mining difficulty
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Bitcoin mining industry’s daily revenue plummeted to $18 million from a peak of $62 million in November, as the crypto's price crashed.

Many bitcoin miners, who expanded operations in 2021 to capture more profits, are now struggling as the crypto’s price crashed.

“The... Many bitcoin miners, who expanded operations in 2021 to capture more profits, are now struggling as the crypto’s price crashed. “The biggest cost historically for bitcoin miners has been their energy source,” Sami Kassab, analyst at Messari, said in a recent interview. As energy prices rose, while bitcoin BTCUSD fell more than 70% from its record high last November, “that right there has left a lot of miners finding themselves in the unprofitability,” Kassab said.

Bitcoin’s hashrate, which measures the total computational power used to secure the network, has been growing with more machines coming online. In response, the Bitcoin network, by its design, increased its difficulty level, making it harder for miners to get rewards.

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