Data by ByteTree, an on-chain analysis has revealed that 11% more bitcoin were sold in the last week than generated. While the first spend transactions ie the first time a bitcoin leaves a wallet after it has been generated in it was 6,500, coin generated by the bitcoin miners was 5,800. The data which was put out on June 1 was generated by a metric used by ByteTree to track bitcoin miners wallet.
To shed more light on how it works, a spokesperson by ByteTree stated that a miner wallet can be owned by an individual or a mining pool even. The first instance when the coin pops up in it it is labelled as a generation. The owner decides when to get it moving which can be instant or never at all and can just lay there. However, the movement is more frequent when generated by a mining pool as it is used to pay to its subscribers or in order to cover the operational cost in fiat, it is sent to a cryptocurrency exchange.
Is it Really All That Bad For The Bitcoin Miners
Conner Brown a prominent cryptocurrency commentator stated that the reason behind this is the capitulation the miners are going through especially since post bitcoin halving and the network changes it brought.
This past week miners have sold 673 more bitcoin than were generated. We are seeing capitulation from inefficient miners, but prices are holding steady.
What do you think happens when these miners are finally shaken out? 🌝 pic.twitter.com/OiFqkFEHwS
— Conner Brrrrrown (@_ConnerBrown_) June 1, 2020
However, a few experts believe that it is all not necessarily that bad. Thomas Heller of F2pool suggested that once the old equipment becomes outdated and mining profitability is reduced, miners instead of throwing in the white towel, tackle it by selling their machines to places with cheap electricity and thus stay in the game making a decent profit. He also added that hardly there have been reports of mining firms quitting the industry to further stress his point. Also, firms like Bitmain and McroBT have launched their new modern set of equipment to increase profitability which would help the miners in coping up with the new increased difficulty and profit problems.
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