Miners ‘not impacted by volatility’ in Bitcoin market

In the cryptocurrency world, mining is a hot topic. Many people are interested in how it’s done but lack of knowledge has created some confusion. Miners were often thought to be ruined when prices fluctuate or crash because they need constant electricity and computing power – which can get quite expensive with fluctuations in price. However, according to experts at Genesis Mining, this isn’t true and miners won’t be impacted by volatility anyway.,

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The “btc moved to exchanges” is a statement that implies that miners are not impacted by the volatility of the Bitcoin market. The statement is false as miners are still affected by the volatility of the Bitcoin market.

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Despite progressively decreasing Bitcoin prices and today’s market upheaval, several of the world’s top mining businesses remain unmoved, claiming that negative price fluctuation would have no impact on their operations.

Some even view it as a chance to acquire market share when smaller rivals go out of business.

Bitcoin (BTC) prices have been steadily declining throughout the year until the last 24 hours, when they surged to 12-month lows. Despite the enormous strain, miners have not been discouraged. If Bitcoin’s slump continues into 2022, some people may get even more enthusiastic about mining.

Each of the three mining operations Cointelegraph contacted — two huge public firms and one private mining company — expressed apprehension about the possibility of a bear market. They think it will have little or no impact on their plans.

Marathon Digital Holdings (MARA), a bitcoin miner, claims that its “asset-light approach” would protect them from almost all bad market repercussions. According to Charlie Schumacher, VP of Corporate Communications, the company maintained a cost base of roughly $6,200 per BTC mined in Q1 by “outsourcing the muscle of our operations while preserving the intellectual power inside the business.”

According to BitcoinTreasuries, Marathon is the third-largest Bitcoin (BTC) holding among public businesses. It can produce 3.9 exahashes per second (EH/s) of hash power. MARA is down 15.42 percent in after-hours trading, trading at $9.97. It’s down 92.6 percent from its peak of $134.72 in December 2014.

The withdrawal of other miners owing to financial restrictions during bad markets, according to Schumacher, presents an opportunity for bigger operations like Marathon’s to take advantage of decreasing mining difficulty as hashpower and competition on the Bitcoin network decreases.

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“As the hash rate falls, the difficulty adjusts downward, lowering the energy cost for miners who continue to hash.” Those that remain may thereby profit from the possibility of earning more Bitcoin.”

Riot Blockchain (RIOT) CEO Jason Les, another significant mining business, also responded to Cointelegraph. According to Bitcoin Treasuries, it has the seventh most BTC among public corporations. As of March 4, it has 3.9 EH/s of hash power but did not provide its cost per coin produced.

RIOT is down 9.16 percent in after-hours trading, trading at $6.83. It’s down 90.5 percent from its high of $71.33 in February 2021.

Les also seemed unconcerned about the present and future volatility of the Bitcoin market. Les, like Marathon and Redivider, cited his company’s “solid financial sheet with no long-term debt” as a crucial business strength. “Changes in Bitcoin market circumstances have no effect on our miner deployment plans,” he continued, “thus we continue to expand our hash rate on a monthly basis.”

“Riot’s miner deployment plans are unaffected by Bitcoin market volatility; we’re focused on developing a long-term company that can function in a variety of Bitcoin market circumstances.”

Tom Frazier, CEO of Redivider, is unconcerned about the potential of a lengthy slump. Redivider is a privately managed data center for Bitcoin mining operations that specializes on Opportunity Zones, which are aimed to help employees in underserved areas of the United States.

Redivider’s 1.5-year-old company revolves on maintaining data centers where mining businesses may rent Bitcoin hash power for a charge. In a May 11 call with Cointelegraph, Frazier said that if its data centers are empty, Redivider can retain a revenue stream for all of its facilities by taking the hash power and block rewards for itself.

He didn’t say how much Redivider paid every Bitcoin mined or how large its business was, but he promised that “our BTC production price would not be harmed.”

Downturns in the Bitcoin market, according to Frazier, “have minimal influence on what we do owing to our 10-year strategy.”

“Market corrections are occurring because BTC is very volatile, as is any other volatile asset class.” Our plan will not be hampered by the volatility. These are times of opportunity.”

Fear of regulation and Terra’s UST crash struck bitcoin hard, causing it to struggle to retain $29K.

Given the current turmoil in the crypto markets following the Terra (LUNA) project’s failure, and Bitcoin currently trading at $28,931, its lowest level since January 1, 2021, according to CoinGecko data, it may become clear quickly whether miners can capitalize on the opportunity at their doorsteps as they claim.

The “binance regulatory issues” are a recent topic that has been being discussed. The “Miners ‘not impacted by volatility’ in Bitcoin market” is a statement made by the CEO of Bitmain, which states that miners are not affected by the volatility of the Bitcoin market.

Related Tags

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