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Why is mining hashrate so low (Why does mining lose money)?

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Why is mining hashrate so low? Why is Bitcoin mining hashrate so low? This is b

Why is mining hashrate so low (Why does mining lose money)?

Why is mining hashrate so low? Why is Bitcoin mining hashrate so low? This is because in the world of blockchain, there is a large amount of computing resources and storage space in the network. Therefore, in order for more people to conduct transactions or earn rewards online, there must be enough devices to support their mining activities. However, when a computer is running multiple tasks, they require a large amount of electricity to operate. So we know that all of this is determined by the difference in hashrate. According to the report from the University of Cambridge on distributed classification ledger technology, the global average data processing capacity per second in 2017 was 10Ms; the total energy consumption in 2016 was 15T/S (TH), which is equivalent to the time required to produce 10,000 blocks in a year.

If we consider the current situation, more than half of the world’s population is using computers or smartphones. Due to factors such as no electricity bills, bandwidth, and energy demand, it is not easy for people to participate in this economic movement, leading to significant uncertainties. So, how to reduce costs? By improving efficiency, these problems can be effectively solved. At the same time, as more and more people adopt digital currencies as a means of payment, people have also begun to accept encryption technology. Historically, this situation has always been happening, but it will not last forever – even at the birth of Bitcoin. The development of Bitcoin is very fast. However, such a phenomenon occurred at the last halving: After the Bitcoin price reached a high point of $20,000 in early 2012, the market generally believed that the price of Bitcoin would exceed $30,000. But it soon fell to around $5,000. At this time, many people have made statements like, “I estimate that Bitcoin will double.” So, a speculation arose:

“Can Bitcoin really achieve this goal?” “Whether Bitcoin can eventually be successfully validated is a question mark hanging over everyone’s head.”

Actually, for Bitcoin, its basic principles are consistent with the design concept of Bitcoin. The purpose of Bitcoin’s design is to establish a secure, reliable, fair, and open network system, rather than relying solely on traditional centralized control methods, in order to provide strong security. Of course, there are some reasons that may affect the technical foundation of Bitcoin. For example, Ethereum founder Vitalik Buterin proposed the possibility of introducing consensus protocols into smart contracts first in Ethereum 2.0, and he stated that the emergence of ETH1.0 would completely change the vision of Ethereum 2.0. He also stated that if a certain algorithm can be fully implemented within a few minutes, its code can be executed.

Why does mining lose money

According to cointelegraph, in a recent article, it was pointed out that Bitcoin mining is a very important part of the cryptocurrency industry. Because it is one of the world’s most complex businesses – we call it “mining”, so in this case, you have to bear losses. If there is a loss (or if your costs increase), then more thorough work needs to be done to eliminate this problem.

In fact, many users believe that they only lose a portion of their profits, but this is not the desired outcome for most people. In fact, many people do not want to lose all their money when they invest. When others make money, there is no reason for it to become unprofitable. But if you make money, you should be confiscated or compensated. That’s why people choose to do this.

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