Mining difficulty plummeted by 7.3%; how should miners choose?

 Mining difficulty plummeted by 7.3%; how should miners choose?

According to data, the difficulty of Bitcoin mining ushered in the adjustment of mining difficulty at the beginning of this month, and the mining difficulty was reduced by 7.32% to about 34.24T, the largest drop since July 2021. It was also the biggest single drop since China banned mining last year. The sudden drop in the difficulty of Bitcoin mining this time means that many mining companies have withdrawn from the mining ranks due to the decline of Bitcoin, mining competition, and the increase in difficulty. The response adjustments made by the Bitcoin system to this show that there has been a large-scale retreat of online miners.
In the past half a month, encryption mining companies have experienced the difficult situation they have faced in the past few months. Considering that the mining business is no longer profitable and they are heavily in debt, it seems that the only way for mining companies to announce shutdown and end their business among them, the world's largest encryption mining company listed in the United States, is also exhausted, and may even be forced to enter Chapter 11 bankruptcy protection. As a result, its stock price has also fallen by more than 98.66% year-to-date.

William Foxley, chief strategy officer for bitcoin miners and hosting services, also said that the difficulty for the industry could drop further in the coming months, given that some machines are unprofitable. Because it is not profitable to sell the machine at this price. A lot of Antminer S19J Pros are not profitable.
As the cryptocurrency market continues to slump since Bitcoin hit an all-time high of $69,000 in November last year, the price of miners has fallen by 81%, and the profitability of hashes has also dropped by as much as 84%. However, it shows that listing new miners has not increased miners' profits.
At the price of BTC at $16,500, only a few top miners can maintain ultra-low profits. Their payback period has been extended for more than 5 years, while some old-fashioned and large-scale mainstream miners have shut down. Some miners in stock are also Hovering on the verge of shutdown, it is expected that when the BTC price drops to $12,000, all miners will enter a state of loss.
The increase in electricity bills is not particularly critical. The core problem is the sharp retracement of the currency price, which has caused the mining revenue to fail to meet expectations. The payback period has ranged from the first year, one and a half years to the current 3-5 years, and even some direct losses. The core shutdown price of miners is $12,000, which indicates that the lowest price of Bitcoin will be around $12,000. The encryption industry is multi-dimensional. The entire life cycle of cryptocurrency revolves around reducing Bitcoin production. For those that fluctuate regularly, the first half of each production cut or the second half of the production cut is generally the bull market stage of cryptocurrency soaring. Still, there is always a mess after the madness, and the encryption industry is such an image representative.
The great benefits, such as production cuts have induced the bubble. When it breaks through the record high and reaches 69,000 US dollars, it may be because of the emergence of high risks, or because of policy regulation (government departments do not want to see the bubble industry grow so strong, and then cause a substantial economic impact. ). The encryption industry will enter a round of deleveraging and bursting the bubble. Still, when the next bull market comes, the new high of Bitcoin will exceed $100,000.