As a result of China’s crackdown on cryptocurrency mining facilities, Bitcoin mining has become easier and more profitable.
More than half of the hashrate has fallen since the market peak in May 2021 due to the Chinese government restricting mining.
Even so, according to data from crypto analytics platform CryptoRank published on June 17, Bitcoin mining is no longer profitable for miners.
This is due to the crisis in the crypto market, which caused the price of Bitcoin to drop to levels not seen in the past 18 months.
As the price of Bitcoin has dropped to the average cost of mining, the platform stated:
“Due to the significant drop in the price of BTC over the past months, mining has become less profitable. For some Bitcoin miners, they may not even be profitable at the moment.”
Bitcoin mining-related stocks Marathon Digital Holding (NASDAQ: MARA) and Riot Blockchain (NASDAQ: RIOT) have seen growth slow in May.
It is important to note that PoW cryptocurrencies have been criticized due to the large amount of electricity required to mine them, as opposed to Proof-of-Stake (PoS) assets, which are considered more environmentally friendly.
Authorities in some areas have even completely banned the use of the PoW method.