A few days ago, we mentioned how Bitcoin cloud mining is the only way for most people who want to be part of the mining game. With nearly each and every cloud mining provider turning up negative earnings, either immediately or after a very short period, it looks like cloud mining will not be profitable for a long time to come. With the total network hashrate taking a serious dip, will we see multiple mining difficulty decreases coming up?
According to the BitcoinWisdom charts, the first (or only) Bitcoin mining difficulty decrease will be upon us relatively soon. It has to be said however that this decrease is far from magnificent, and will not make Bitcoin mining profitable again all of a sudden. In fact, that 0.59% difficulty decrease isn’t help matters much at all, but it may be the first of multiple decreases over time.
Unfortunately for those among us who still mine Bitcoin, whether it is at home, in a data center or via cloud mining, we are currently at a point in time where you have to re-evaluate your current mining situation. Making an ROI is out of the question for the time being, but for some of you, there might still be a tiny possibility of actually earning a bit of money instead of bleeding funds all over the place.
Whether or not you are among that group of “lucky ones” remains to be seen though, as it will depend on a lot of different factors. One of the most important factors is the Bitcoin price itself of course, and in that regard, it might not be a bad idea of there were less miners for a while. After all, most of the miners have to sell their Bitcoin at any value in order to pay for electricity, hosting or whatever other costs they might have.
And by the looks of things, several miners have already turned off their machines over the past few days. Earlier this month, the Bitcoin network hashrate increased from 272,7 Petahash/second to 358,5 Petahash/second, despite the Bitcoin price being rather weak (around the US$250 mark) compared to previous values.
This trend was followed by a very sharp dip in network hashrate, as it plummeted all the way down to 229,5 Petahash just a few days ago. Things have picked up again recently however, and we are currently sitting at slightly over 300 Petahash/second once again. Given the current Bitcoin price of roughly US$200, it remains to be seen if the network hashrate go below 300 again, or whether it will not be affected at all.
With CEX.io recently announcing they are halting Bitcoin cloud mining services to due unprofitability, analysts expect other cloud mining platforms to face profitability issues as well sooner or later. So far, no official word has been issued by other companies, but we are keeping a close eye on the situation.
What are your thoughts on the future of Bitcoin mining in gelera? Will we see multiple difficulty decreases? Leave a comment below!