- Bitcoin miners suffer losses of $3,226 for each Bitcoin issued.
- Bitcoin is headed in the direction of centralization.
- Bitcoin is apparently not the decentralized community’s breakthrough.
According to a recent Reddit post, every time a new bitcoin is released into circulation, bitcoin miners apparently lose $3,226 on average. When using this simple computation, an additional projected loss of $120,975 occurs every hour.
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Since Core Scientific filed for Chapter 11 bankruptcy in the USA on Wednesday (the 21st), another significant mining business has highlighted the challenges facing the industry. It is however not the first, not the second, and most likely not the last, the Reddit post said.
It is important to note that the Bitcoin blockchain is moving toward centralization with every new occurrence like this one. It is unsettling to consider that a network with a capitalization of nearly $300 billion USD has a Satoshi Coefficient (NC) of 2. Reddit asserted that two entities account for more than 52% of the hash rate generated.
This is another example of how defective the economic and security concept of Bitcoin is. Alternatively, as proponents of the dominant currency claim, “this is simply another FUD.”
The post also mentions the Reddit user’s personal likes and his intention to keep his opinions to himself in order to prevent the blog from being mistaken for a “shill post.” More currencies are already available that perform some of bitcoin’s tasks more effectively. As a result, the blog added, bitcoin is no longer seen as the top contender to provide the breakthrough we need to decentralize money.
However, according to Macromicro.me statistics, starting October 6, 2022, the price of Bitcoin has decreased relative to the cost of producing it. In order to “find out the average mining expenses of bitcoin,” Macromicro.me claims that the online page leverages data gathered from Cambridge University.
More miners will join when mining expenses are lower than the market price of bitcoin, according to Macromicro.me. The number of miners will decline if mining expenses exceed miner earnings.
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