Skip to content

Miners have sold more Bitcoin than they generate, according to the latest data

June 1, 2020

Last week, Bitcoin (BTC) miners sold 11% more coins than they generated in the same period. This emerges from data of the chain analysis portal ByteTree from June 1st.

According to the portal metric, which records Bitcoin wallet addresses associated with mining companies, around 5,800 BTC have been generated in the last seven days, compared to more than 6,500 transactions since the “first issues”.

The “first edition” used in the calculation is “the first time a Bitcoin leaves the wallet where it was generated,” said a ByteTree spokesman to Cointelegraph, explaining in more detail how its metric works:

“The miner’s wallet can belong to an individual, company or mining group. If the coins are generated by the miners and appear in their wallet, they are counted as ‘generation’. These coins can remain in the miner’s wallets for days, Months, years, or forever, depending on when you want to move the coins, if these coins are generated by a mining assembly, the coins will either be distributed to group subscribers (ie paid in BTC) or sent to a exchange at some point to keep running costs down to cover the operation. “

It could be expected to call it “surrender”.

Miners have sold more Bitcoin than they generate, according to the latest dataMiners have sold more Bitcoin than they generate, according to the latest data

The crypto Twitter commentator Conner Brown used this data to to argue as inefficient mining companies capitulatedHowever, some experts warn that the term “surrender” can have different meanings.

Thomas Heller, Global Commercial Director of F2Pool, He told Cointelegraph that even if mining with certain equipment is useless due to increasing difficulties, Miners often sell their machines to places where electricity is cheaper than ending the game.

“Because these older mining machines with electricity prices in China, Canada, the United States or Europe are no longer profitable, they end up in other places like Kazakhstan, Russia, the Middle East, and South America, “ Heller concluded:

“So far, in 2020, there have been very few cases where mining operations have closed.”

Reality after halving

As Cointelegraph previously posted, Halving Bitcoin affected the network in several ways: Block times, fees and income have changed significantly as a result of the event.

To reduce the increasing difficulty and Provision of efficiency levels in mining as before halving, Industry leaders start a new generation of mining hardware like Bitmain and MicroBT. Today Bitmain released its new ASIC Antminer T19 Bitcoin Mining, which is expected to be launched in late June.