BTC Mining Ratio drops. Binance vs Miners

The miners are in very red numbers, well, were.

Since the Halving, what is the cost of mining, and what does Binance "pay"?

Let's see the numbers.

• On the 21 of june the cost of mining was of $42,257.64 and the BTC/USD ratio was of 64,096.20. With an average mining cost of 0.71.
• But on the 01 of May the BTC Average Mining Cost was of $89,999.02, while the BTC/USD ratio was 58,254.01 with a ratio of 1.54.

Now, if we look at the actual range, it was something like this.

If we look at the cost of mining BTC we can clearly see a ascendent trend, meaning that the cost of mining will be higher and higher, this makes sens since the rewards are cut in half.

But a ratio of 1.54 it is not worth it.

But why did the ratio dropped?

Well JPMorgan points out (as the mining cost went under $50.000) that is because the "unprofitable miners" exited the network, since the cost went to high for them. Now the cost does show a delay, logicaly.

The hash rate is slowe, the cost is to high, and if you add to that an inefficient workflow or process, of course you will exit.

The "Boom" of the miners a few years ago, did anticipate a huge drop or exit for them too, the question is just "when", at it seems like the "When" is "now".

The computatinoal power did droped and slowed down because of the "Runes Protocol", a new form of token creation on the network, and that was the reason for the SPIKE in transaction fees.

This provided a temporary boost to miner revenue in the immediate aftermath of bitcoin halving,” analysts led by Nikolaos Panigirtzoglou wrote, adding that “bitcoin miners were able to offset the loss in issuance reward due to halving with the surge in transactions fees, keeping the block rewards for miners almost unchanged.

Now, since the Efficient Miners are the ones remaining, the cost should stabilize, and the liquidity should be "safe" for a while now. Since we where all worried about market's BTC liquidity.

On the other hand, let's see the prices on Binance. The first thing that comes to my mind, is that the Profit is actually way under the price of the coin, meaning that the cost is way higher that the reward.

And if we look at the Mining Comission is a 4% of the mined BTCs but the interesting information comes from the "Performance" stats, where the performaces of BTC PPS is rated at 103.98% from the 23th of June.

And if we look at the unitary winnings, it looks like this table:

Now, all this numbers, we must take them with a lot of caution.

But the interesting thing, are not actually the mining but the:

War for the Liquidity

Since the BTC ETFs started to get the green light of the comission and to stack the liquidity of BTC in theirs markets, a silent war has started, a war to acumulate as much BTC as it is possible in our hands.

This will allow us "move the market" but more importantly it will give us power to negociate with the markets.

We went for a moment in time where the big whales where mostly individuals, to a point where the Big Companies are the ones moving the market, even attacking directly the ones who provide the BTCs to the market, the miners.

With the whole debt that the world carries, with the devaluation of the economies, with the insecurities of the market (S&P500 carried almoust just by Nvidia, as an example), the war is not for the money, the war is not for the power, but for the liquidity.

Let me know what you think about this.

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#BTC #economy