The global mining industry is reeling under a lot of pressure. The news is coming over from all over the world that cryptocurrency mining companies are holding their operations and closing their operations. The rig manufacturers are bleeding as well. The crypto mining News from all over the world is negative. This is due to the recent downturn in cryptocurrencies. Many crypto facilities in Asia, as well as Europe, have already closed.
Can crypto miners make any profits at current levels?
Even the mainstream products of reputed cryptocurrency mining rigs like S9 are resulting in a profit margin of -11.6%. Similarly, when you look at the older rigs like L3, it is resulting in a margin of -100%. This clearly indicates that many of the cryptocurrency miners might not be able to make any kind of profit. If the mainstream rigs are not able to generate the profits, the older and lower powered ones will certainly not be able to do so.
The problem is that if the downturn continues or the cryptocurrency prices remain at these depressed levels, the cryptocurrency mining industry might not be able to survive altogether. The problem is that only the cryptocurrency miners who have deep pockets will be able to survive this crypto winter. Unless and until, the Bitcoin (BTC) prices do not go above $ 4500, most of the miners will not be able to break even. The breakeven will only happen with the advanced mining rigs. For the rest of the mining rigs, the cryptocurrency prices have to move even higher.
Will crypto miners continue through this crypto winter?
While the crypto miners who have deep pockets and lower mining popular cryptocurrencies like Bitcoin (BTC) might continue in anticipation of better prices but the same cannot be said about smaller cryptocurrency mining operations. The smaller crypto mining operations might not be able to survive this crypto winter. This has already been seen all over the world. Moreover, crypto mining operations are even defaulting on their long-term commitment since they simply have run out of cash.
Thus, only when Bitcoin (BTC) prices move above $ 4500, can there be some relief for the crypto mining industry. Up until that point in time, most of the crypto mining operations will just need to pass through the crypto winter in anticipation of the recovery.