Arcane Research analysts have concluded that although Bitcoin mining remains a profitable activity, its profitability could fall due to the decrease in the price of the crypto and the increase in the network hashrate.
According to them, since the beginning of the year, the profitability of mining 1 BTC has been trending sideways. After deducting electricity costs (at a rate of $0.05 per kWh), the Antminer S19 device generates around $31,000 per Bitcoin, taking into account the price of a $39,000 coin.
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Meanwhile, the revenue of the less efficient Antminer S9 is already about $13,000 per 1 BTC.
According to experts, the most important factor for mining profitability is the price of the crypto, which has fallen from $46,000 to $40,000 since the beginning of the year. The hashrate of the network, which has increased by 15% during this period, also severely affects profitability.
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The high profitability of Bitcoin mining during the fall led to a massive increase in capacity, which will come online in the coming months. This will inevitably lead to an increase in hashrate and, consequently, mining complexity.