In 2020, due to the fall of the cryptocurrency market, miners may disconnect from the network

Since the beginning of March 2020, the hashrate of the Bitcoin network has fallen by 21%. As you know, the bitcoin network determines many factors that affect the course of almost all known bitcoin forks and hard forks. Against the background of the general fall of exchanges, even stable cryptocurrencies felt the effects of Friday March 13th 2020.

As world practice has shown, digital assets are sick as well as ordinary people. Due to the consequences of the coronavirus, the world economy, and with it the cryptocurrency and stock exchanges suffered a blow that affected everyone without exception. In particular, mining, which was closely connected with the blockchain network, ceased to be profitable, and many owners of crypto farms began to disconnect from the network. Given the current market situation, the miners, before adjusting the complexity, turned off part of the computing power, in anticipation of new conditions. The complexity is expected to decrease significantly.

Recall that the recalculation of the complexity of bitcoin mining is carried out once every two weeks. Mining difficulty dropped by 15.95%, which is the second largest drop in Bitcoin history. According to the Poolin mining pool, the most popular asic model Antminer S9 at a price of $0.06 per kilowatt / hour is on the verge of profitability and brings only $0.10 to $0.28 per day. This is an indicator that mining is very unprofitable, which forces them to completely stop mining.

From March 9 to March 16, 2020, more than 1.1 million Bitcoins were received on cryptocurrency exchanges. On March 13, 2020 (the well-known Friday of the 13th), a record of receipts was achieved – about 319,000 BTC were unloaded on the exchanges.

During a falling market, people are more inclined to sell a falling asset rather than buy a cheap cryptocurrency. However, if there are those who still purchased a previously well-established cryptocurrency at a very favorable price, then it is worth noting that in 15 days, bitcoin has restored its course to $6,660 per coin, rising from $3,300 as of 03/13/2020. However, even this indicator does not satisfy miners to resume the work of crypto farms. The hashrate of the Bitcoin network has already fallen to 82.285 EH/s.

The analytical resource CoinMetrics claims that the dump of the cryptocurrency market on March 11-12, 2020, was provoked by the market participants themselves, who held the crypt for no more than 1 year. Long-term hodlers practically did not sell BTC, and with the instability of the exchange rate, they began to actively sell the asset, which brought down the course. Mining will be almost unprofitable, and miners will face big problems if bitcoin does not start to get more expensive in the near future. Mining will remain unprofitable, even if the BTC rate remains at $ 5350.

The fall in the value of the flagship cryptocurrency has already led to the fact that the hashrate of the bitcoin network has updated the lows this week. In order for mining to become profitable again, the bitcoin exchange rate must grow to at least $7,400 per coin in order for its mining to become a profitable enterprise. But, do not panic prematurely, because miners will not turn off their equipment immediately and right now, but the nearest halving (reduction of the block mining reward) can cause a crushing blow and significantly affect the acceleration of this phenomenon, especially if the BTC rate remains at $ 6660. The halving will have a devastating impact on those miners who use outdated hardware. Crypto farms that have upgraded and switched to high-performance and less energy-consuming equipment will not suffer very big losses, but they will still fall under the shock wave.

Summarizing the analytics, we can safely say that mining will never disappear. Perhaps there will no longer be such popularity as at the dawn of its appearance since 2010, but a temporary decline will occur. The fewer miners there are, the more profitable cryptocurrency mining will be, which will attract either former miners or new ones. Cryptocurrency mining will work in the most ambiguous conditions and at any rates, because everything depends on energy costs. With ASIC miners, everything is a little more complicated. Any hard fork can turn any crypto farm into a useless collective farm that will bring pennies. This happened, for example, with asics for Monero XMR after its update. Despite all the difficulties, the mining market is alive, developing and can and will bring good money.