Bitcoin Miners May See Profits Ease As North American Heatwave Threatens To Work

Due to the summer heat waves in North America, Bitcoin miners may begin to record a significant increase their income. This extreme weather is expected to have a major impact Bitcoin hash rate.

Bitcoin Miners See Profit Increase Due to Less 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 often occurs in North America during the summer. The United States (US) is known as the home of many Bitcoin minerswith data from the University of Cambridge showing that about 37% of Bitcoin mining takes place in the US.

This development is important considering that Bitcoin miners were already facing profit pressure, mainly due to half event, which cut their mining rewards in half. Bloomberg report that these miners could lose up to $10 billion following a halving. Therefore, the decrease in the number of miners at this time will undoubtedly be a relief to some who see an opportunity to cover some of the expected losses.

These miners also faced increasing competition, reflected in Bitcoin’s hash rate or computing power, which continued to rise throughout the year, reaching an all-time high (ATH) of 835.86 EH/s, according to data from CoinWarz.

Blockware analysts it also highlighted how the summer heat affects you Bitcoin miners, saying heat reduction is the “number one” operational challenge these miners face. The Application-Specific Integrated Circuit (ASIC), the device these miners use for mining, is said to be able to reach “extremely high temperatures” without proper cooling measures.

This situation tends to be worse during the summer months, Blockware notes that many miners have to reduce their activities partly due to overheating. Residential power consumption also reaches high levels during these summer months, enough to “enable demand response clauses in miners’ power purchase agreements.”

BTC Will Face Hashrate Drop

Bitcoin hash rate it is also expected to drop significantly due to the extreme heat wave in the US. Blockware noted that during the North American summer months, the hash rate has stagnated or decreased over the past two years as miners reduced their fees. mining operations.

These Blockware analysts predict another “summer of flat hash rate/rising difficulty” due to the slowdown caused by the heat and the continued increase in miners caused by “reduced profit margins” from half event. Indeed, the Bitcoin hash rate has been dropping for a while now and is currently at 624.63 EH/s.

At the time of writing, Bitcoin is trading at around $65,400, down from 24 hours ago, according to the report. data from CoinMarketCap.

The featured image was created with Dall.E, a chart from Tradingview.com