Bitcoin miners say it's hard to survive in this low-profit environment

Running a Bitcoin mining business can be very worrying lately. The downturn in the cryptocurrency market caused the value of BTC to drop to a third of its all-time high in November 2021, forcing miners to sell some of their Bitcoin holdings to cope with the price of work and different monetary liabilities. In addition, considerations regarding the environmental impact of crypto mining remain a difficulty that miners should continue to face in the coming years.

Sadly, not everyone will survive. “Hedge funds have exploded in a short period of time,” Hansen added. “I believe it will take three to six months for miners to explode. So we’ll see who has good operations and who can survive in this low-margin environment.”

Magdalena Gronowska believes that mining could help finance additional research into higher waste management and clean energy. “I think what’s striking about bitcoin mining is that it actually offers a whole new option to finance or subsidize electricity or waste management infrastructure,” she said. “It’s a way to go beyond the standard taxpayer or electric energy taxpayer path because it’s completely dependent on a system of lofty financial incentives.”

Meanwhile, Hashworks CEO Todd Esse believes that crypto mining will eventually concentrate in pure asset-rich regions because these locations will have the ability to generate electricity at a significantly reduced value . “I imagine a lot of the mining along the way will probably be in the Middle East and North America and to some extent Asia,” he said. “In the long run, it depends on how much they will reduce. It really says something about the pure asset offering and energy prices.”