The functioning of crypto money networks has been provided by processing power since the first day of its emergence. Using the processing power of hardware equipment, Bitcoin miners consume electrical energy and verify the transfers that take place on the network. As a reward, the miners earn a profit by getting some crypto money rewards connected to the network they run.
According to names close to the industry, miners who prefer to keep most of the BTCs they earn have started to change their behavior. Keystone Law's Louise Abbott emphasized that in the current macroeconomic conditions, miners are more reluctant to make long-term investments.
Speaking to the crypto press, Abbott explained his opinion with the following words:
“While many mining startups want to HODL their Bitcoins to keep their value high, current conditions have put them in a difficult position.”
The crypto expert commented that the profitability of BTC mining is declining due to high operating costs from energy prices and the prospect of an impending recession. Miners, who are left alone with uncertainty, therefore dispose of their reward Bitcoins faster during this period.
Andy Long, CEO of White Rock Management, one of the Bitcoin mining companies, emphasized that miners who take excessive risks are delaying their payments as a result of increasing interest rates. Therefore, miners who cannot grow through debt or capital increase are now more willing to sell their BTC tokens.
Riot, one of the miners that announced its balance sheet in the past weeks, announced that it has sold 600 of the 639 Bitcoins it has obtained.