Nowadays, the miners and the market are facing a crisis. The public mining firms expressed their concern through financial statements that the firms had to increase the sale of cryptocurrencies by four times to meet their needs. In May, public mining firms sold nearly 4,411 BTC, which is quadruple sales over the average from Jan to April 2022, and the firms’ financial statements provided to the regulators are the proof.
Regardless of the lack of authentic information regarding the coin’s movement by miners, it looks clear that firms are trying their best to survive. The figures shared by the analytic company Coin Metrics also confirmed that cryptocurrency miners have begun shifting their coins to cryptocurrency exchange wallets.
In the beginning, the miners were paid 50 bitcoins per block mined. Now they receive 6.25 bitcoins because every four years remuneration price has halved. The miners also charge commissions for processing transactions. When the good time comes, the miners have plenty of money to pay for energy to manage other operating-related expenses, so they like to save coins.
Now the circumstances are different; electricity costs are increasing, while miners’ profits are decreasing along with crypto rates. Under these circumstances, the companies will have to exchange bitcoins for fiat to make payments for the electricity and payroll for employees.
The public miners stored nearly 46,500 bitcoins in their wallets at the end of May of the current year. The companies will have to take measures to deal with the difficult circumstances. The firms will have to boost the bitcoin’s sales to finance the operating-related activities; in this way, these companies can survive in the market.
If the miners increase the sales of the bitcoins, then the coins’ volume will increase in circulation and bearish pressure on the industry. Now, it’s up to the miners how they increase the sales of the bitcoins to evade the crisis? According to the published report, the main digital currency is doing business at $20,108.
Earlier, the value of the digital currency dropped to 18,700 dollars- that is the minimum amount since December 2020. According to the report, the funding of the digital assets industry dropped to 880 billion dollars, the market losing over 500 billion dollars in the week.