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Analysts of the crypto publication CoinDesk believe that miners were one of the reasons for the May fall of Bitcoin. In the last month of spring, the cryptocurrency updated the annual minimum, then stayed in flat for two weeks due to the sale of BTC reserves created by companies.
In previous years, miners accumulated mined cryptocurrency, supporting business development through investments and loans.
Investors began to disappear in November due to the tightening of monetary policy by world central banks, which caused a drop in risky assets. Us stock market indices have lost about 20% of capitalization over the past six months, the total value of cryptocurrencies has sunk by 65%.
In the conditions of outflow of investments, miners are forced to sell the accumulated Bitcoins at the lows of the market. Companies must pay for the equipment ordered last year under previously concluded contracts, finance the construction of new farms and cover operating expenses.
The outflow of investments is not the only problem of miners. The tightening of the monetary policy of central banks is directly related to the growth of inflation. In developed countries, consumer prices for the year added 8%, which leads to an increase in the cost of 1 kW.
According to Cryptomonday, miners can spend up to 75% of the income per block of BTC to pay for electricity. This puts the business of small and medium-sized miners on the verge of profitability, given the constant drop in profits in the industry.
In May, Bitcoin miners earned $ 906.2 billion, 21.6% lower than the April results. The decline in yields has not yet led to a significant drop in the hashrate, but analysts are talking about the deferred problem. The computing power of the network is supported by equipment supplies stretched for six months.
Every month, the latest ASIC miners with increased hashrate are put into operation, but the overall schedule remains unchanged. Incoming capacity covers retired small farms, the loss of which will have an impact on the industry at the end of the year.
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