Increased Unspent Miner Supply Shows Why Bitcoin Miners Are Bullish for The Long Term
According to the online data store Glassnode, bitcoin miners exchange their reserves of currency. The unused stock of bitcoins stored by miners on the network is only 500 bitcoins, which is only 500 bitcoins lower than the previous record of 1.778 million bitcoins. The unspent stock is bitcoins received as a reward for checking transfers in the bitcoin network, and were not spent. According to Glassnode, miners began to postpone a larger number of earned bitcoins.
This started after the hashrate of bitcoin mining at record highs, after falling by more than 50% almost overnight in May after the cessation of active activity in China. According to the data Blockchain.com the bitcoin hashrate has grown by more than 113% over the past six months. The accumulations of miners may portend that they are waiting for a price increase in the near future, which was confirmed by analysts, including PlanB, the creator of the bitcoin-to-stream exchange model. PlanB believes that even the decline in currency prices indicates a new price cycle, and soon the currency will rise again.
The accumulations also show the level of mining profit at the moment. I agree with various sources, the profitability of bitcoin mining reaches 90%, even with revenue per day of about 37.4 million dollars. The high profit margin made it possible to take loans to expand mining activities without selling currency.
Large companies such as Marathon and Hut8 took advantage of the situation and closed multimillion-dollar financing windows in a very short time. According to Marathon CEO Fred Thiel, bitcoin has to fall to about $6,500 before the company realizes the losses from bitcoin mining operations.
Due to the fact that the bulk of the currency is in the accounts of miners who accumulate them, there will be a shortage of currency in the market, which will provoke a jump in bitcoin prices as demand increases.
But mining has other problems, for example, such as the impact on the environment. Most of the computers used for mining spend a huge amount of electricity. China has banned mining on its territory, including for this reason. The search for environmentally friendly, inexpensive and liquid energy sources is very necessary for mining for further development. The high demand for specialized computers used for mining, the so-called ASICs, makes mining highly competitive.