While Bitcoin price dips are never really seen positives, they do vary in damage. The latest fall of the Bitcoin market has been seen as an incredibly big one. However, a loss of gains in the Bitcoin market may only be a loss of funds for certain investors, but it is when the miners of the network start to get effected that fear really escalates.

While Bitcoin is not a centralized entity, and for that reason should not be influenced by issues with the decisions in the market or entities thus involved, the Bitcoin market has a strong reliance on its backbone — the miners.

Miners rely on profitability to remain interested in securing the network, unlocking new blocks, and ensuring transactions. However, when the profitability falls and electricity costs become more than the profit from mining, miners can start to turn away and leave the market in a worse off place.

The fall in 50 percent of the price in Bitcoin has now — in some instances — left Bitcoin miners in a red zone of profitability as explained by Digital Asset Manager, Charles Edwards.

#Bitcoin miners now unprofitable.



Bitcoin Electricity Cost tested, this is the point where miners start to turn off rigs, b/c the electricity bill is more than 1BTC.



These conditions don't last long.



Expect we hold (mostly) above $5000, and then start to see Hash Rate drop. pic.twitter.com/AW7H3T3Q1D — Charles Edwards (@caprioleio) March 13, 2020

“Bitcoin Electricity Cost tested, this is the point where miners start to turn off rigs, b/c the electricity bill is more than 1BTC. These conditions don’t last long. Expect we hold (mostly) above $5000, and then start to see Hash Rate drop,” he tweeted

Mining exodus

During the long bear market of 2018, there were scenes spreading across social media of miners switching off their machines and throwing equipment out into the trash. Some of it was sensationalised and overblown, but there was certainly a consideration from miners as to what they should do in relation to a low BTC price.

However, what is benefiting Bitcoin’s market in this 50 percent drop in price is that the mining effort has been on high-effort in the lead up to the mining reward halving, but there has also been a new wave of Bitcoin mining equipment that has come to the fore.

The new Antminer S19 has been seen to make the previous models that powered the Bitcoin network obsolete. The latest models have unsurpassed energy efficiency — ideal in a time where energy costs are paramount. It also has a hashrate of up to 110 TH/s for the Pro edition.

Looking to cash in

The Bitcoin mining reward halving set for May this year was seen as a major event to help send the price of the major cryptocurrency’s price action skyrocketing. However, this latest fall in the Bitcoin price down to unprecedented reasons, has put that drive on the backfoot as Bitcoin rewards have essentially already dropped 50 percent and are expected to drop another 50 percent in May.

