Crypto downturn sees electricity consumption on Ethereum plunge by 50%

2022-6-24 22:30

Electricity consumption on some of the biggest crypto networks dropped by as much as 50%, as depressed token prices forced miners to shut shop, according to the Guardian.

Crypto miners are feeling the pinch

The recent sell-off was a brutal reminder of how volatile crypto investing can be. But it’s not just investors who are feeling the pinch. Miners, who must balance overhead costs with token prices, are also facing hardship.

An indication of this is the electricity consumption used in the mining process. Estimates from Digiconomist show the most energy-hungry network, Bitcoin (BTC), experienced a sharp drop in electricity consumption, falling from a high of 204.5 TW/h per year, on June 11, to 132.07 TW/h per year as of Thursday – a 35% decrease in less than three weeks.

Source: digiconomist.net

The fall in electricity consumption for the Ethereum (ETH) network is more pronounced. The May 23 high, of 93.98 TW/h per year, saw a steep decline in the days proceeding. Currently, the network’s consumption is 47.73 TW/h per year – a 49% drop in 32 days.

Source: digiconomist.net Tumbling token prices force inefficient miners out of business

Falling token prices put pressure on the least efficient miners with the highest costs, forcing them to switch off machinery or face operating at a loss.

Bitcoin mining profitability slumped to $0.0715/day for 1 THash/s on June 19, marking a 20-month low.

Similarly, Ethereum mining profitability is also trending downwards, tumbling to $0.0135/day for 1 MHash/d on June 18 – a 26-month low.

Commenting on the situation, Alex de Vries, the founder of Digiconomist, said miners with “suboptimal equipment,” operating under “suboptimal circumstances,” are being forced out of business.

“This is literally putting them out of business, starting with the ones that operate with suboptimal equipment or under suboptimal circumstances (eg inefficient cooling).”

de Vries continued by making a distinction between Bitcoin ASIC mining equipment and Ethereum GPU-based mining equipment, saying Bitcoin mining machines cannot be repurposed. Whereas GPUs have a ready market with PC gamers.

“For bitcoin mining equipment that’s a big issue, because those machines cannot be repurposed to do something else. When they’re unprofitable they’re useless machines. You can keep them around hoping the price will recover or sell them for scrap.”

Should token prices continue trending downwards, it won’t be long before only the most efficient miners can afford to keep their machines running.

The post Crypto downturn sees electricity consumption on Ethereum plunge by 50% appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

crypto electricity consumption plunge sees ethereum downturn

crypto electricity → Результатов: 126


Фото:

Kazakhstan Authorities Propose 400% Increase In Tax On Crypto Miners

Kazakhstan’s Head of State Kassym-Jomart Tokayev has ordered an increase in taxes on electricity used by Bitcoin miners in the country, according to a local news outlet Kazinform. Speaking during an expanded meeting of the government, the president stated that his government would embark on identifying all mining farms, checking their tax status, carefully studying […]

2022-2-9 23:32


Amid Electricity Shortages, Kosovo Government Places Ban On Crypto Mining

Kosovo has banned crypto mining on Tuesday in an effort to reduce electricity use as the country grapples with its worst energy crisis in a decade as a result of electricity disruptions. Kosovo Bans Crypto Mining Operations Due to electricity shortages during the winter season, the government of Kosovo has decided to stop crypto mining in the country.

2022-1-5 22:14


Фото:

China’s high court proclaims that crypto is not protected by law

China has been making a lot of headlines in regards to the crypto industry this year, and more often than not, not for good reasons. The country has seen a number of its provinces crackdown on cryptocurrency mining, causing the miners to abandon their posts and seek out cheap electricity in other provinces, countries, and […] The post China’s high court proclaims that crypto is not protected by law appeared first on Invezz.

2021-8-23 15:12


Фото:

Energy Veteran Roy Phillips Joins Board of Advisors at Intelligent Mining (iM)

Roy Phillips, founder, and CEO of REP Energy, an electricity generating company, has joined the Board of Advisors at Intelligent Mining(iM) following a recent press release. Intelligent Mining (iM) is a platform responsible for providing environmentally responsible energy solutions which support efficient crypto mining operations.

2021-7-28 23:16


Фото:

Iran to Shut Down Licensed Crypto Miners in Peak Hours of Power Consumption

Citing a need to maintain a stable electricity supply for other users, Iran will be pulling the plug on cryptocurrency mining farms whenever power consumption peaks. The measure intended to deal with shortages will target licensed facilities despite the government admitting that illegal crypto miners burn much more energy. Licensed Crypto Miners Use 300 MW, […]

2021-5-23 07:00


Фото:

Iran to Fine Crypto Miners Using Household Electricity

The Iranian government has introduced a new policy against cryptocurrency miners who use household electricity for their mining activities.  Iran to Crackdown on Illegal Mining Activities  According to Tehran Times on Sunday, (Amy 16, 2021), a spokesperson for Iran’s Ministry of Energy, Mostafa Rajabi Mashhadi, said that the government would impose a hefty fine onRead More

2021-5-18 12:00