Bitcoin miners reportedly sold 11% more coins than they generated over the same period
According to data from the on-chain analysis portal ByteTree, last week, Bitcoin miners sold 11% more coins than they generated over the same period. Thus, about 5,800 BTC have been created in the past seven days, compared to over 6,500 first spend transactions.
Bitcoin miners sold 11% more coins than they generated over the same period
According to Cointelegraph, a ByteTree spokesperson explained to elaborate on how their metric works in greater detail:
“The miner wallet can be owned by an individual, a company, or a mining pool. When the coins get generated by the miners and appear in the miner wallet, they are counted as ‘generation’. Those coins can then sit in their respective miner wallets for days, months, years, or forever. It is up to the controller of that miner wallet to decide when they want to move the coins. If these coins are generated by a mining pool, the coins will either be distributed to the pool subscribers (ie. paid in BTC) or sent to exchange at some point in order to cover the fiat costs of operation.”
Based on data from mining companies, crypto commentator Conner Brown said:
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
Sharing with Cointelegraph, Thomas Heller, global business manager at F2Pool, said:
“Even when it becomes unprofitable to mine with specific equipment due to the increased difficulty, the owners typically sell their machines to places where electricity is cheaper instead of quitting the game. As these older machines are no longer profitable to mine at the electricity price in China, Canada, the USA, or Europe, they eventually end up in other locations, such as Kazakhstan, Russia, the Middle East, and South America. ”
“So far, in 2020, there have been very few cases of mining farms going out of business.”
As AZCoin News reported, the Bitcoin Halving has affected the Bitcoin network in several ways because the hash rate, block time, fees, and miner revenue have changed dramatically as a result of the event.
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