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.

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 .”

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.

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