Miners and companies leave the cryptocurrency market en masse because it does not bring profit

As we have been reporting over the past few weeks, the cryptocurrency segment is going through a less fortunate phase, with the valuation of currencies plummeting, leaving investors wary.

In this sense, this reality has several implications, including the fact that miners and companies operating in the sector are leaving the cryptocurrency market en masse as their mining is no longer profitable.

Miners and companies say goodbye to the cryptocurrency market

The cryptocurrency market is going through hard times and in particular, bitcoin, the most popular digital currency in the world, fell below $20,000 last Saturday (18), showing lowest value since December 2020. Not at the time of this writingthis cryptocurrency is worth $21,347.03.

So we are now seeing some of the repercussions and reactions to this fall in digital currencies. Recently, for example, we reported that we witnessed video card wholesale used for cryptocurrency mining.

And the latest news goes even further and indicates that, including due to the increase in the price of electricity, miners and companies investing in the cryptocurrency segment are now massively leaving that same market, since it has ceased to be profitable.

As you can see from the chart above, the TWh energy consumption related to Bitcoin had an interesting increase between mid-2021 and early 2022. But after some stable time, the same consumption has fallen sharply in past times.

At a peak of around 200 TWh, this consumption was the same as that spent by entire countries such as Argentina. Another interesting comparison is that this same consumption is equal to the amount of electricity consumed by all data centers around the world in a year.

But at the moment, even large companies that are betting on the practice of mining digital currencies are leaving this sector because they believe that it is currently a big problem when they cannot make a profit and bear the daily costs.

In addition, the energy consumption associated with Ethereum ends up having the same characteristics. As you can see in the chart above, there was a significant increase in January, which slowed down in recent weeks and then fell sharply.