Bitcoin Mining Difficulty Decline Favors Persistent Miners

Bitcoin mining difficulty is falling thanks to the digital coin’s underlying blockchain technology. If trends persist, small miners should be able to take advantage of this latest development.

Right now, the bitcoin market is going through trying times after the unprecedented price decline that occurred in November. It saw bitcoin drop in value and breach the $3,500 mark. This fall was an over 80 percent reduction from its all-time high of $19,650 within 12 months. The situation has had miners in limbo as many try to mull over the next course of action while profits dwindle.

According to figures released by Autonomous Research LLP. Fundstrat Global Advisors LLC, over 100,000 individual miners have ceased operations. Additional estimates indicate that approximately 1.4 million mining servers have been shut down since September. F2pool, a leading China-based mining pool, reportedly saw over 600,000 miners close operations in November.

(Image Credit: Yahoo)

Persistent Crypto Mining Companies Maintain Profitability Amid Declining Difficulty

Some of the resolute crypto mining companies that continue to operate under current conditions continue to enjoy impressive profits. One such entity is Salcido Enterprises, a Washington-based firm that manages low-cost electricity and fiber optic connectivity facilities. With access to cheap power, the company apparently pays just about 3 cents per kilowatt-hour. The rates have allowed the company to realize groundbreaking profits.

The firm, which claims to operate one of the largest ASIC centers in North America, apparently has access to 22 megawatts of power. It’s also working on another facility that is set to provide an additional 20 megawatts.

Speaking to Bloomberg, its head, Malachi Salcido, revealed that his company saw profits tumble to just 20 percent almost overnight in the wake of the recent market slump. However, margins rebounded to 40 percent after bitcoin miners started to leave the sector.

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