Miners are facing an increasingly problematic climate for participating in the Bitcoin blockchain, and only higher BTC prices can help.
Bitcoin (BTC) is squeezing its miners this month as suppressed prices threaten to impact profitability.The latest data shows both narrowing profit margins and miners waiting longer to recoup their initial investment.Miner production cost faces off with BTC priceWhile Bitcoin miners have largely held off on major distribution as BTC/USD descends from all-time highs, the picture now appears precarious.Calculations from on-chain analytics platform CryptoQuant reveal that miners’ production price — how much it costs to mine a single bitcoin — could be right where current spot price resides.While “raw” costs may be around $22,000 per BTC for miners in North America, which is home to the lion’s share of hashing power, additional costs could put the total at more like $30,000.“We estimate cost basis for bitcoin miners in North America around $22K per bitcoin mined.
