WATCH The Bitcoin Miners!! Will They Start Selling?! 📉

If you’ve been keeping up with the Crypto headlines you might have heard That many bitcoin miners are having a Hard time staying profitable as btc’s Price continues to plummet Given that the crypto bear market is Nowhere close to being over this has Many wondering what it could mean for Bitcoin if miners start to struggle and Just how low btc could go before bitcoin Breaks Today i’m going to briefly explain what Bitcoin mining is give you an overview Of the current state of the industry and Tell you what it could mean for btc and The rest of the crypto market [Music] Before we talk about asics i need to Tell you something quick being a Financial advisor is not my shtick i’m Just here to give you the info you need To make crypto click So please contact a financial advisor if Your portfolio has fallen down a pit Now if this is the first time we meet my Name is guy and i’m here to help you Join the crypto elite I do this by creating high quality Crypto content that will make you turn In your seat Coins tokens news and reviews are just a Few ways that i bring the heat So if this sounds sweet subscribe to the Channel and ping that notification bell

To join my crypto fleet Now i know my rhymes are neat but it’s About time we talked about bitcoin Mining and btc If you’re unfamiliar with bitcoin mining Here’s what you need to know in short Bitcoin mining is how the bitcoin Blockchain stays secure and why it’s Technically the most secure payment Network on the planet As many of you will know bitcoin uses a Consensus mechanism called proof of work Wherein computers called miners must Expend a lot of computation to add a Block to the bitcoin blockchain Each block contains transactions along With a reference to the previous block Hence the term blockchain Now bitcoin miners are incentivized to Do the computational work to compete to Produce bitcoin blocks because each Block contains a block reward Denominated in btc bitcoin’s native Cryptocurrency coin Bitcoin miners also earn the fees for Any transactions within the block which Are of course paid in btc As many of you will also know every four Years bitcoin block rewards are cut in Half When the first bitcoin block was mined Way back in january 2009 the block Reward was 50 btc Today the block reward is 6.25 btc and

Sometime in early 2024 the block reward Will be cut down to just 3.125 btc This gradual restriction of new supply Combined with the increased demand for Btc from the adoption of bitcoin has Made btc the five figure asset it is Today now take a second to consider that Btc was literally worth zero when it Began and was given away for free via Special websites called bitcoin faucets Now if you’re wondering why anyone Bothered mining btc when its value was Zero this is simply because it didn’t Cost all that much to mine bitcoin Mining could be easily done using a Regular computer it didn’t require any Expensive equipment and any additional Energy costs from mining were often Negligible Today bitcoin mining requires Specialized computers called application Specific integrated circuits or asics Which can cost tens of thousands of Dollars a pop and use a lot of energy Both directly and indirectly as asics Need lots of space and cooling so they Don’t overheat or see a degradation in Performance Make no mistake however the total energy Use associated with bitcoin mining Amounts to a rounding error on the Global scale and bitcoin miners emit Less carbon than all the world’s dryers

You know for clothes Now you can get more facts and stats About bitcoin mining using the link in The description Now if you’re wondering why bitcoin Mining requires much more energy than it Used to This is because of something called Bitcoin difficulty which exists to Ensure the bitcoin blockchain remains Secure as more computers compete to Produce new bitcoin blocks and earn btc As the term suggests the bitcoin Blockchain will automatically make new Bitcoin blocks more difficult or less Difficult to mine based on how much Computing power is connected to the Bitcoin blockchain at any given time The total computing power connected to The bitcoin blockchain is called the Bitcoin hash rate and as you can see the Bitcoin hash rate has gone parabolic Over the last eight years or so Naturally so too has bitcoin’s mining Difficulty What this ultimately means is that Mining btc continues to be insanely Profitable In other words mining btc continues to Be worth all the hardware and energy it Costs to do so As i mentioned in the introduction However it seems that many bitcoin Miners are having a harder time staying

Profitable as btc’s price continues to Plummet this has many people concerned Because if btc is no longer profitable To mine then many bitcoin miners will go Out of business Now in theory this wouldn’t be a very Big deal because the bitcoin difficulty Would just drop in response to the Absence of all that extra hash rate and Bitcoin would carry on as usual This is essentially what’s been Happening since bitcoin mining became a Thing In practice however this could become a Big deal because if too many bitcoin Miners go bust the security of the Bitcoin blockchain would be reduced Possibly to the point that a bad actor With lots of computational power could Execute a 51 attack For context a 51 attack involves Contributing more than 50 percent of Bitcoin’s total hash rate to manipulate Btc transactions If that happened confidence in bitcoin Would be shaken and btc could go to zero Now for the record bitcoin has never Suffered a 51 attack and neither has Ethereum for that matter Even so we all know there’s no shortage Of fiat-funded entities that are eager To see bitcoin fall and could even be Willing to foot the bill The bank for international settlements

Certainly falls into this category Especially since it’s the self-described Bank for central banks You can find out what the central banks Want the future of finance to look like Using the link in the description and Spoiler alert crypto isn’t part of their Equation Anyways if you look beyond the bitcoin Mining related headlines you might Realize that there are only a handful of Bitcoin mining operations that seem to Be in trouble The one headline that comes to mind here Is the one from cointelegraph in late June titled quote bitcoin miners sold Their entire may harvest This article references a report by Arcane research which specifies quote Public bitcoin mining firms This is a small but significant detail Because not all bitcoin mining companies Are publicly traded and publicly traded Bitcoin mining companies only make up Around 20 Of bitcoin’s hashrate These bitcoin miners seem to be the ones Under stress and not because btc mining Is unprofitable at current prices Like almost every other crypto company Bitcoin mining companies borrowed Billions to expand their operations at An exponential rate With rising interest rates supply chain

Issues and increase energy costs many Bitcoin miners are needing to make much Bigger monthly debt payments than Expected As a result they’ve had to sell some of Their btc holdings to make ends meet and It’s possible that this cell pressure Contributed to the massive crash the Crypto market saw in may after terror Collapsed though i suspect that many big Sales of btc are happening over the Counter so they don’t affect spot price You can find out what happened to terror Using the link in the description i Digress Now it’s important to point out that Most publicly traded bitcoin mining Companies still have massive btc Treasuries according to the buy bitcoin Worldwide website specifically around 45 000 btc in total with marathon digital Alone holding almost 10k btc Now this is a bit of a double-edged Sword because on one hand it suggests That publicly traded bitcoin miners are Still overwhelmingly holding rather than Selling but on the other hand it means They could do some serious damage to Btc’s price if and when they start to Sell out of necessity This selling can be easily tracked using Glassnode’s minor net position change Indicator and some of you might recall Me mentioning it a couple of times in

Other videos As you can see bitcoin miners as a whole Aren’t currently selling but it looks Like the positive position change is Starting to trend down Although there does seem to be a Correlation between the btc holdings of Bitcoin miners and btc’s price It’s unclear what the causal pathway is Is the price of btc crashing because Bitcoin miners are selling or are Bitcoin miners selling because the price Of btc is crashing The answer Seems to be both Note that even if all publicly traded Bitcoin mining companies sold their btc Holdings it would create less than a Billion dollars of cell pressure which The bitcoin market would almost Certainly be able to absorb especially If most of these btc sales were Happening over the counter This begs the question of how low btc Prices could go before bitcoin miners Are forced to sell regardless of whether They’re publicly traded or not This depends on several factors and the First is the efficiency of the bitcoin Mining machines they’re using Now if you watched our aforementioned Video about the facts and stats of Bitcoin mining you’ll recall that it was A summary of an extremely comprehensive

Bitcoin mining report put together by Coin shares In that report coin shares actually Managed to estimate which bitcoin miners Are the most popular and the answers are The antminer s19 and the antminer s9 the Second of which is a much older model of Machine I’ll leave a link to a few minor Profitability calculators in the Description if you’re interested Now the second factor to consider in This calculation is the cost of energy Which varies significantly from country To country According to cambridge university almost 75 percent of bitcoin’s hash rate is Coming from three countries the united States china and kazakhstan Obviously the cost of energy varies Significantly even within the united States which is why it’s awesome that Cambridge university shows us which States are housing most of bitcoin’s Hashrate More than half of the us-based hash rate Is coming from georgia texas and Kentucky According to the energy cost sites for These states the average energy cost for Companies is around seven to eight cents Per kilowatt hour I’m sure that the cost for big energy Consumers like bitcoin miners is

Actually slightly lower so let’s say six To seven cents to be conservative As for china and kazakhstan the global Petrol prices website puts their energy Costs at eight cents and four cents per Kilowatt hour respectively The thing is that it’s likely that the Energy costs for bitcoin miners are much Lower in china as well This is because that coin shares report Notes coal gas and hydro as being the Three primary energy sources for bitcoin Miners around the world According to world of meter china Consumes half of the world’s coal so It’s likely that that’s where bitcoin Miners are using coal for energy coal Based energy costs just three cents per Kilowatt hour which puts it on a par With the cost of renewable energy Sources such as nuclear wind and solar This also makes it possible for bitcoin Miners to operate less efficient Machines and still be profitable so it’s Likely this is where all those s9s are Too Given that most bitcoin miners are using The antminer s19 we can plug in its Parameters along with the average energy Costs for bitcoin miners around the World which is roughly 5 cents per Kilowatt hour overall into a Profitability calculator to determine How low btc can go before they all start

To struggle as you can see btc could Fall as low as 8k before there’s any Cause for concern on the bitcoin miner Side This is consistent with the 8 000 break Even figure given by arcane research in A recent bloomberg article Meanwhile applying the same calculations To the parameters for the antminer s9 Reveals that it stops being profitable To mine btc when the price drops below 19k which would explain why there are Lots of sources which suggest bitcoin Mining stops being profitable around This level even though that’s not Strictly true However this all assumes that bitcoin Miners are actually paying for the Energy they’re using it looks like there Are lots of bitcoin mining operations That are making use of free or extremely Cheap excess energy be it from Renewables or from natural gas flares Some bitcoin miners are even setting up Their own energy sources and a few have Gone as far as outright buying their own Power plants This cuts much of the cost out of the Equation and therefore makes bitcoin Mining worth doing regardless of btc’s Price and the hardware being used This relates to something else that’s Often overlooked when it comes to Bitcoin mining and that’s the fact that

Most bitcoin mining operations aren’t Just mining btc Many of them also mine ethereum’s eth Along with other proof-of-work altcoins As many of you will know ethereum will Soon be transitioning from proof of work To proof of stake in a process known as The merge Now the merge has been rescheduled many Times since ethereum’s inception and has Even been rescheduled twice this year It’s safe to say that this has kept Ethereum miners on their toes especially Since ethereum developers have been late In delaying ethereum’s difficulty bomb Which as the term suggests makes Ethereum blocks abnormally more Difficult to mine in order to force Ethereum miners to transition to proof Of stake Now even though ethereum’s difficulty Bomb was delayed again in early june the Mostly successful merge on ethereum’s Roxton test net seems to be why eth took Such a nasty dip on that day and why Ether has been struggling ever since Now at first glance this doesn’t make Much sense because you’d think a Successful test run of the merge would Result in a rally upon closer inspection However it’s clear to see how this could Be the wake up call to ethereum miners That the merge is imminent and they need To adjust accordingly

As it so happens just a couple of days Before the roxton merge publicly traded Crypto mining company hive sold 10 000 Eth to acquire additional bitcoin mining Machines something that makes sense Given that a proof-of-stake ethereum Means no more proof-of-work mining Profits for the company Now here’s where things get a bit scary A research report from the kraken Cryptocurrency exchange in september Last year noted that ethereum miners Were holding almost 20 percent of eth’s Circulating supply While it’s likely that this figure has Declined since that time it’s probably Still incredibly high What this means is that we could see a Lot more cell pressure for eth coming From ethereum miners as they follow Hive’s lead in acquiring as many bitcoin Miners as they can to make up for the Missing income something many publicly Traded bitcoin mining companies will Need to do to keep paying back debts As much as i want to say that ethereum Miners will start staking instead this Seems unlikely for two reasons First staking is a very different Industry to mining and the cost of Expanding a mining company’s scope to Include staking may not be worth the Expense especially if money is already Short

Second bitcoin mining machines cost as Much as 50 percent less than they did During the crypto bull market including The popular antminer s19 Assuming a 15k btc and 5 cent per Kilowatt hour energy cost the effective Yield on investing in an antminer s19 is Almost 20 percent per year compared to The five percent offered by eath staking Which is a no-brainer As such it seems that eth could very Well see lots of cell pressure from Ethereum miners when the merge comes Around The silver lining is that ethereum’s Transition to proof of stake will make It more attractive to institutional Investors who may just manage to offset This cell pressure more about that in The description Ethereum’s transition to proof-of-stake May also reduce costs for asic Manufacturers and free up more chips and Other computer bits for bitcoin-specific Mining machines Crypto news site cryptoslate speculates That the cost of gpus could also crash Enough to make mining other asic Resistant altcoins like xmr much more Profitable Anyhow the last thing that needs to be Discussed about bitcoin mining is the Elephant in the room and that’s the fact That energy costs have been rising

Rapidly around the world As i mentioned in our video about how Rising energy costs could affect bitcoin Miners we could see many mining Operations taken offline by decree as Governments try and ration energy going Into the winter shouldn’t have turned Off those nuclear plants should we In a worst-case scenario we could see Even more governments forcing bitcoin Miners to surrender their own off-grid Energy sources in the name of the Greater good which given the events that Have unfolded over the last couple of Years would not be all that Unprecedented Even if radical energy sanctions like These did happen though bitcoin won’t be Beat there will always be someone Somewhere mining btc regardless of its Price and the bitcoin blockchain will Continue chugging along This is important to keep in mind as we Approach the next bitcoin halving Because you can bet that lots of bitcoin Miners will be wiped out if btc’s price Is anywhere below 20k Again the real question is whether Bitcoin’s hash rate would drop so low That it becomes easy to corrupt and if You ask me the answer is no chance in Hell Bitcoin mining has become a Multi-billion dollar industry and it’s

Something that’s starting to be done by The public sector as well Recall that el salvador is mining Bitcoin with volcanic heat and the Island nation of tonga has plans to Start doing the same sometime next year As bitcoin’s adoption continues we will Inevitably see btc start becoming a part Of central bank balance sheets and at That point it won’t be too much of a Leap for btc to become the world’s Reserve currency If that happens it will be in the National interest of every country to Mine as much btc as it can not only Because it earns them passive income in The form of hard money but because it Would further secure and decentralize The bitcoin blockchain which is what They would all want If this sounds a bit too far-fetched Well i don’t blame you it sounds crazy Until you consider how quickly the Dollar has been disappearing from Central bank balance sheets and how much Alternative currencies and assets are Starting to pop up more about that In the description And that’s all for today’s video about Bitcoin mining if you found it Informative smash that like button to Let me know remember to subscribe to the Channel and ping that notification bell Too because you do not want to miss the

Next video While you wait you can check out coin Bureau clips for emergency market Updates or you can tune in to the coin Bureau podcast for deep dives into Crypto projects You can also follow me on twitter tiktok And instagram for memes and behind the Scenes and join my telegram channel to Get daily crypto market updates you Absolutely need If you’re wondering what cryptos i hold As part of my portfolio and what macro And crypto factors i’m watching Subscribe to my weekly newsletter And if you want to support the channel Head on over to the coin bureau merch Store and find some cool crypto merch That’s suitable for summer you can find Your way to these resources and much More using the links down below as Always thank you so much for watching And i’ll see you in the next one until Then stay cool stay safe And stay crypto [Music] You

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