Easy-to-Understand Explanation of Mineral Resources & Reserves for Mining Stock Investors
According to a new study by the analytical company Diar, despite the record high level of income from mining bitcoin in 2018, the profitability of mining fell to an extremely low level and in the near future only large players with a good margin of financial strength will be able to make profit..
According to Diar, in the first 9 months of this year, the average price of MTC exceeded last year’s by 40%, thanks to which the miners earned a total of $ 4.7 billion. However, during this period, the indicators of network complexity, electricity prices increased significantly and competition intensified. These changes led to a significant decrease in profits..
This jeopardizes the continued success of miners with low computing power and gives an advantage to large companies. Analysts believe that even Bitmain pools practically do not bring profit to the owners, and the company thrives on the sale of Antimer ASICs, which accounted for 95% of gross revenue in 2018. In conclusion, Diar said that in the near future the market will continue to expand, and profitability will fall, which may lead to the fact that only large players will continue to work..
In Russia, they want to further reduce the profit from mining, equating it with a business and taxing it accordingly.
text by Sid Nietzsche, photo: Diar, Shutterstock