The global hash rate of Bitcoin [BTC] has dropped sharply by nearly 30% in the past three days, coinciding with the US attack on Iran's nuclear facilities. Since the June 21 attack, the hash rate has dropped from 954.6 EH/s to 693.5 EH/s, a 27.3% drop as of press time. In other words, computing power drops, or miners involved in the Bitcoin network unplug their machines. This bodes well for short-term pessimism. This may stem from factors other than the recent tensions between Israel, Iran, and the United States.
Iran's BTC mining speculation
Some people speculate that the sharp decline in hashrate after the attack indicates that Iran may have been using nuclear energy to mine BTC. A policy advisor for Bitcoin in El Salvador also agrees with this viewpoint. He emphasized the "hedging" ability of BTC in geopolitical tensions.
For a BTC mining equipment maintenance company, the decline in hashrate "is beneficial for the profitability of miners". The company pointed out that the mining prospects for Bitcoin depend on the upcoming network difficulty adjustment, which will determine the difficulty of finding the next block. If the difficulty decreases, the computing and energy costs will drop, potentially attracting more miners and increasing the network's hashrate.
However, according to data from the data platform, miners' daily income has been hit, dropping from nearly 50 million dollars over the weekend to 34 million dollars. Meanwhile, the data shows that as of June 21, the cost of producing one BTC is 98,600 dollars. With the trading price of Bitcoin at around 101,000 dollars, miners' current profit margin is very low.
Some people associate the recent decline in hashrate with miners in Texas shutting down their machines due to rising electricity costs caused by the summer heatwave. In other words, higher BTC mining costs could weaken miners' profitability and prompt them to sell reserves. Therefore, it is worth paying attention to this aspect in the short term to see if there are any structural adjustments.
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BTC global hashrate plummets by 30%, geopolitical situation may affect mining landscape.
The global hash rate of Bitcoin [BTC] has dropped sharply by nearly 30% in the past three days, coinciding with the US attack on Iran's nuclear facilities. Since the June 21 attack, the hash rate has dropped from 954.6 EH/s to 693.5 EH/s, a 27.3% drop as of press time. In other words, computing power drops, or miners involved in the Bitcoin network unplug their machines. This bodes well for short-term pessimism. This may stem from factors other than the recent tensions between Israel, Iran, and the United States.
Iran's BTC mining speculation Some people speculate that the sharp decline in hashrate after the attack indicates that Iran may have been using nuclear energy to mine BTC. A policy advisor for Bitcoin in El Salvador also agrees with this viewpoint. He emphasized the "hedging" ability of BTC in geopolitical tensions.
For a BTC mining equipment maintenance company, the decline in hashrate "is beneficial for the profitability of miners". The company pointed out that the mining prospects for Bitcoin depend on the upcoming network difficulty adjustment, which will determine the difficulty of finding the next block. If the difficulty decreases, the computing and energy costs will drop, potentially attracting more miners and increasing the network's hashrate.
However, according to data from the data platform, miners' daily income has been hit, dropping from nearly 50 million dollars over the weekend to 34 million dollars. Meanwhile, the data shows that as of June 21, the cost of producing one BTC is 98,600 dollars. With the trading price of Bitcoin at around 101,000 dollars, miners' current profit margin is very low.
Some people associate the recent decline in hashrate with miners in Texas shutting down their machines due to rising electricity costs caused by the summer heatwave. In other words, higher BTC mining costs could weaken miners' profitability and prompt them to sell reserves. Therefore, it is worth paying attention to this aspect in the short term to see if there are any structural adjustments.