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Bitcoin miners face a squeeze as BTC production cost remains well above spot market value

Bitcoin miners are dealing with lots of pressure following the recent difficulty adjustment increase on Nov. 20, 2022, and the leading crypto asset dropping further in value against the U.S. dollar following FTX’s collapse. The average cost of bitcoin production is much higher than the bitcoin spot market value. Statistics from this weekend have shown that.

Statistics Show Bitcoin’s Cost of Production Is a Lot Higher Than the Leading Crypto Asset’s USD Value

On Sunday, Bitcoin.com reported on Bitcoin’s difficulty rising by 0. 51% at block height 764,064, and the increase pushed the difficulty to an all-time high at 36. 95 trillion. After that difficulty transition, data shows the overall global hashrate dropped from 317 exahash per second (EH/s) to 233 EH/s.

The hashrate is currently coasting along at 250. 59 EH/s, according to records from coinwarz.com. At the same time, BTC‘s fiat value dropped a great deal after FTX collapsed and filed for bankruptcy protection.

Statistics on Nov. 21, 2022, show that the cost of bitcoin production is much higher than BTC‘s current USD spot market value. The metrics recorded by macromicro.me indicate that the average mining cost is $19,662 today, while the USD value of BTC is recorded at 16,120 nominal U.S. dollars per unit.

Bitcoin Miners Face a Squeeze as BTC Production Cost Remains Well Above Spot Market Value
Macromicro.me statistics on Nov. 21, 2022.

The macromicro.me statistics indicate that bitcoin’s price in comparison to the cost of BTC production has been lower since Oct. 6, 2022. Macromicro.me claims that it uses data from Cambridge University to determine the average mining cost of bitcoin .

” When mining costs are lower that bitcoin’s market price, more miners will sign up,” the macromicro.me website details. “If mining costs are greater than miner’s revenues, [the] number miners will drop .”

Bitcoin Miners Face a Squeeze as BTC Production Cost Remains Well Above Spot Market Value
Braiins.com statistics on Nov. 21, 2022.

In addition to the metrics showcased on macromicro.me, Glassnode’s hash price chart indicates that the hash price is at an all-time low. According to Glassnode, the chart shows a “metric to estimate daily miner incomes relative to their estimated contribution towards network hash-power.”

Analytics from braiins.com also indicate that the current hash value is lower than the current hash price. Similar to macromicro.me’s stats, braiins.com metrics show the change occurred around Oct. 6, 2022. If bitcoin prices don’t increase or if they drop lower, a number of BTC Mining operations will face a squeeze out of the industry if they are not facing this situation already.

What do you think about bitcoin’s spot market value dropping below the crypto asset’s cost of production? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or related to the use or reliance of any content, goods, or services in this article.

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Strike Launches Bitcoin Lightning Network-Enabled Money Transfers to Africa

United States-based Strike users can now instantly transfer funds to Kenya, Ghana and Nigeria using the newly added feature “Send Globally”. This feature converts funds into local currencies before moving them to the recipients’ bank accounts or mobile money accounts.

The High Cost of Sending Money to Africa

According to Strike, a digital payment platform built on Bitcoin’s lightning networks, a new feature has been added to their platform that allows for instant, low-cost payments to Africa. The feature, known as “Send Globally”, is currently only available to US-based users. It applies to payments to Ghana, Kenya and Nigeria.

As the digital payments firm’s Dec. 6 press statement explains, the use of the Lightning Network’s rail makes transferring funds to any of the initially covered countries an almost costless exercise. According to a recent World Bank Migration and Development Brief, the cost of sending funds to the Sub-Saharan Africa region is currently the highest globally.

Direct deposits to the account

of the recipient

Strike has partnered up with Bitnob, an African payment platform, to overcome the cost and other difficulties associated with sending money across borders. Jack Mallers, founder and CEO of Strike, argued the case for the feature while he was still at it.

High fees, slow settlement, and lack of innovation in cross-border payments have negatively impacted the developing world. Payment companies in Africa are finding it difficult to do business. People cannot send money home because they can’t pay exorbitant fees for money transfers in and out Africa.

Mallers stated that users who wish to transfer funds to any one of these countries through Strike now have the option to “transfer their US dollars easily, instantly, across borders” via the new feature. Payments to any country are instantly converted into the appropriate currency and transferred to the recipient’s bank account or mobile money account.

The statement stated that Strike will continue to grow its payment service in Africa through integrations and partnerships, including with cross-border payment providers such as Chipper Cash.

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What are your thoughts on this story? Please comment below to let us know your thoughts.

Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, author, and writer has been awarded the Zimbabwe Journalism Award. He has written extensively on the economic problems of certain African countries and how digital currencies can offer an escape route for Africans.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services in this article.

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Back to basics as Dogecoin retraces to 78.6% Fib level. Here is the potential price action

Dogecoin (DOGE/USD) trades at $0.085. Just a week ago, the cryptocurrency had tapped the $0.15 level. The losses underline the meme tag associated with Dogecoin. The cryptocurrency remains under the mercy of bears if the price fails to overcome a key level. Dogecoin’s recent recovery has largely been pegged to Elon Musk’s acquisition of Twitter.…


Dogecoin (DOGE/USD) trades at $0.085. Just a week ago, the cryptocurrency had tapped the $0.15 level. The losses underline the meme tag associated with Dogecoin. The cryptocurrency remains under the mercy of bears if the price fails to overcome a key level.

Dogecoin’s recent recovery has largely been pegged to Elon Musk’s acquisition of Twitter. Had you bought DOGE before October 27, when he finalised the acquisition, you would have tripled your investment. That is if you exited your position on August 31. Now, days after sealing the deal, the excitement has subsided, and DOGE may need a fresh price catalyst.

Musk has kept mum over whether DOGE would be accepted as payment for the social media giant. The billionaire had in the past supported DOGE and hinted at its use in Twitter payments. So the probability remains, but the lack of open announcements has been slowing DOGE. Consequently, the token has lost the mojo it had started late last month. Consequently, we could see the price remain subdued even longer if positive developments fail to come by.

DOGE struggles to clear $0.09 after attempting recovery at 78.6% Fib. level

Source – TradingView

Turning to the technical side, Dogecoin has found little bullish footing since sliding to $0.07. The level is slightly below the 78.6% Fibonacci retracement zone. However, recovery has been muted by key resistance at $0.09, and DOGE is taking another dip.

Should you buy DOGE?

Dogecoin is a very surprising cryptocurrency. The smallest of news can make the buyers go crazy. Taking advantage of such moves can generate huge returns, irrespective of what the technical indicators show.

Nonetheless, the current sentiment is not only bad for DOGE but all cryptocurrencies. DOGE also suffers from the lack of positive mentions, such as the speculated use in Twitter payment. With this in mind, a bear market could be inevitable.

A technical outlook shows that $0.09 is a key zone for DOGE to break to go higher. To a technical reader, the meme cryptocurrency is not an attractive buy.

Where to buy DOGE

eToro

eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


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Bitcoin Cash negates potential bullish reversal zones. Are buyers to be optimistic?

If you have been eyeing Bitcoin Cash at $110, you may have to wait a little longer. A contagion of risks brewing in the market forced a sharp selloff, pushing Bitcoin Cash to below $110. This level provided crucial support and the token formed multiple bottoms. BCH tested a lower level at $87 but has…


If you have been eyeing Bitcoin Cash at $110, you may have to wait a little longer. A contagion of risks brewing in the market forced a sharp selloff, pushing Bitcoin Cash to below $110. This level provided crucial support and the token formed multiple bottoms. BCH tested a lower level at $87 but has since recovered to above $100. Do you need to be optimistic?

Cryptocurrencies are known for sudden moves in the market. Just as the slip below $110 happened unexpectedly for BCH, a recovery above the level can too. Buyers should remain optimistic and be prepared to purchase once this happens. However, this should not be taken lightly.

Crypto winter seems far from over as this week’s selloff shows. Recent headlines have been about macro issues. Investors have been able to build a thick skin against any macro forces, such as tighter economies. For that reason, most cryptocurrencies have been consolidating – an example of BCH at $110. The liquidity status of crypto firms seems to be a crucial factor that markets have lost sight of.

The collapse of FTX brought a new perspective on crypto markets – the financial well-being of exchanges and crypto firms. How many people will be able to survive the next bull market as recession bells ring? This fear will continue to ring and long-term recoveries will be limited. Do you want to snap BCH?

BCH regains – heading back to above $110?

Source – TradingView

A sharp sell-off made BCH invalidate bullish reversal signs already forming at $110. The MACD indicator is still in the bearish zone. However, the weak momentum has improved slightly. $110 is the level to watch.

Should you buy BCH?

If you’re a “buy now, buy tomorrow” type, it is better to stay away from BCH right now. The token’s momentum is weak and it will not generate any returns.

However, long-term buyers should consider BCH on their waitlist. BCH’s safety from a potential further slump will be confirmed if the token recovers above $110.

Where to buy BCH

eToro

eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users have the ability to connect with, learn, copy, or get copied from other users.


Get BCH today
with eToro

Bitstamp

Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

Bitstamp, which is fully regulated, offers users an intuitive interface and high levels of security for digital assets. It also provides excellent customer support.


Bitstamp – Buy BCH Today


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