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ByteTree: miners sell more bitcoins than they mine

ByteTree: miners sell more bitcoins than they mine

According to the analytical portal ByteTree, last week manners sold 11% more BTC than they extracted.

According to ByteTree, over the past week, miners have extracted about 5,800 BTC, and sold about 6,500 BTC. The portal analyzes the wallets of major miners by the indicator “first spent coins” — that is, by the first movement of coins from extracted blocks:

“A miner’s wallet may belong to an individual, company, or pool. When coins are mined by miners, BTC appears in the wallet and then can be there for days, months, or years. The owner of this wallet will decide when to move the coins. If these BTC are mined by a mining pool, they will either be distributed to the pool’s clients or sent to the exchange to cover operating expenses.”

One Twitter user posted
bytetree data and noted that they may indicate the” capitulation ” of inefficient miners. However, Thomas Heller, Director of global business at F2Pool, said that even when it becomes unprofitable to mine cryptocurrency on old hardware, device owners usually sell them to other miners who have access to cheaper electricity.

“When it becomes unprofitable to mine BTC on outdated devices in China, Canada, the US or Europe, these ASIC miners end up in other jurisdictions, such as Kazakhstan, Russia, the Middle East and South America,” Heller said. “In 2020, there were very few cases when mining farms completely ceased operations.”

Last month, it was reported that after the block reward was halved, miners started disabling outdated ASIC miners for mining BTC. The total power consumption of miners decreased by 24%. Recently, cryptocurrency enthusiast Andreas Antonopoulos stated that manners will benefit from a reduction in the cost of electricity caused by falling oil prices.