Will the Bitcoin mining industry collapse? Analysts explain why crisis is really opportunity – Cointelegraph

Bitcoin mining involves a delicate balance between multiple moving parts. Miners already have to face capital and operational costs, unexpected repairs, product shipping delays and unexpected regulation that can vary from country to country and in the case of the United States, from state to state. On top of that, they also had to contend with Bitcoins (BTC) precipitous drop from $69,000 to $17,600.

Despite the BTC price being 65% down from its all-time high, the general consensus among miners is to keep calm and carry on by just stacking sats, but that doesnt mean the market has reached a bottom just yet.

In an exclusive Bitcoin miners panel hosted by Cointelegraph, Luxor CEO Nick Hansen said, Theres going to definitely be a capital crunch in publicly listed companies or at least not even just publicly listed companies. Theres probably close to $4 billion worth of new ASICs that need to be paid for as they come out, and that capital is no longer available.

Hansen elaborated with:

When asked about future challenges and expectations for the Bitcoin mining industry, PRTI Inc. adviser Magdalena Gronowska said,One of the biggest challenges that weve had in this transition to a low-carbon economy and reducing GHG emissions has been an underinvestment in technology and infrastructure by the public and private sectors. What I think is really amazing about Bitcoin mining is that its really presenting a completely novel way to fund or subsidize that development of energy or waste management infrastructure. And that's a way thats beyond those traditional taxpayer or electricity ratepayer pathways because this way is based on a purely elegant system of economic incentives.

As the panel discussion shifted to the environmental impact of BTC mining and the widely held assumption that Bitcoins energy consumption is a threat to the planet, Blockware Solutions analyst Joe Burnett said:

According to Burnett, Bitcoin mining is a bounty to produce cheap energy, and this is good for all of humanity.

Related:Texas a Bitcoin hot spot even as heat waves affect crypto miners

Regarding Bitcoin mining dominance, the future of the industry and whether or not the growth of industrial mining could eventually lead to crypto mass adoption, Hashworks CEO Todd Esse said,I believe that most of the mining down the road will be held in the Middle East and North America, and to some extent Asia. Depending upon how much they are eventually able to cut off. And that really speaks to the availability of natural resources and the cost of power.

While it is easy to assume that growing synergy between big energy companies and Bitcoin mining would add validity to BTC as an investment asset and possibly facilitate its mass adoption, Hansen disagreed.

Hansen said:

Dont miss the full interview on our YouTube channel and dont forget to subscribe!

Disclaimer. Cointelegraph does not endorse any content of product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

The rest is here:
Will the Bitcoin mining industry collapse? Analysts explain why crisis is really opportunity - Cointelegraph