The Pain isn't Over for Bitcoin Minerscoinshares.com/research/the-pain-isn-t-over-for-bitcoin-miners
90 sats \ 4 comments \ @BTCMiner 18 Oct 2022 bitcoin
write
preview
related posts
25 sats \ 1 reply \ @0322ee777777 18 Oct 2022
Great share. Also wish we had data on average electricity cost for plebs. I imagine its at least a full cent or two above the US industrial average rate.
reply
0 sats \ 0 replies \ @BTCMiner OP 19 Oct 2022
In the U.S., residential rates are, in general, going to be far higher than the industrial rate in nearly every specific region.
Source: https://www.statista.com/statistics/200197/average-retail-price-of-electricity-in-the-us-by-sector-since-1998
Average energy prices for the United States, regions, census divisions, and selected metropolitan areas https://www.bls.gov/regions/midwest/data/averageenergyprices_selectedareas_table.htm
Reasons home miners continue mining in the current environment vary, but will include how obtaining KYC-free BTC from other methods also incurs a premium, or that the cost of electricity is subsidized or paid by another party, or the heat is reused, etc.
reply
3 sats \ 0 replies \ @BTCMiner OP 18 Oct 2022
Here's the Tweet by the author of the report that kicked off the Twitter thread where the Coinshares report was first shared:
If miners paid the current US average industrial electricity price (8.96 ¢/kWh), only the latest generation series machines (s19/m30/a12) would generate positive cash flow, which did not hit the market until earliest mid-2020.
aka Margins are v thin for mining companies ..
https://twitter.com/MatthewKimmell/status/1582402590813302785 [Nitter]
reply
5 sats \ 0 replies \ @nymkey 18 Oct 2022
I think it is time to decentralize and avoid concentration
of ASICs in mega-grids.  It is better to relocate miners all
over the globe and invite people to integrate them in
their houses, using them to warm the rooms or
dry clothes instead of dryers and so on.
reply