Bitcoin Mining Starts Becoming Unprofitable, Despite $4.7 Billion in Revenue This Year

  • A new research report claims bitcoin mining is becoming unprofitable.
  • This as the cryptocurrency's hashrate keeps rising, while its price has been ranging.

Bitcoin mining is seemingly starting to become unprofitable because of the network’s rising hashrate, even for large-scale operations. This, despite bitcoin miners raising a total of $4.7 billion in the first three quarters of this year.

According to a report published by blockchain research firm Diar, revenue in the first half of this year exceeded last year’s total by $1.4 billion. BTC’s rising hashrate, however, has seen miners paying retail electricity prices become unprofitable last month.

The firm notes miners currently earn 54,000 BTC ($350 million) a month and although the industry has been enduring a months-long bear market, the flagship cryptocurrency is still up 40% in the last 12 months. Despite these figures, bitcoin’s growing hashrate has seen China, where energy costs an average of $0.08 kW/h, become one of the “handful” of countries where it makes sense to mine.

Bitcoin's hashrate rises as miners' profitability dwindles

Diar adds that even at these prices logistics can take down inexperienced mining operations, as they may fail to properly manage salaries, rents, equipment, and more. Nevertheless, the report notes the market has “a lot of room left to grow and profits to squeeze.” It adds:

But Bitcoin mining has, at least for now, and most likely in the future, moved into the court of bigger players with deep pockets.

Bitmain, which filed for an initial public offering with the Stock Exchange of Hong Kong (SEHK), could be moving to act as a “swing producer in an effort to keep the network profitable for all miners.”

Per Diar, the cryptocurrency mining hardware manufacturer - who runs two of BTC’s largest mining pools and is a key investor in ViaBTC – gets most of its revenue (95%) from selling miners, and estimates it has cornered 75% of the global market for these.

Given miners’ falling profitability, Bitmain may be forced to “swing” its hashrate between countries to average out energy costs. It currently runs 11 mining farms in China, with 200,000 mining units in them. Diar claims that if these are fully deployed S9 miners working on bitcoin’s blockchain, then they could represent about 6% of the network’s hashpower.

Bitmain is reportedly also planning to launch three more mining farms in the United States in the first quarter of next year. The mining giant is likely also focusing on the bitcoin cash network, as it holds 1 million BCH – something CEO Roger Ver says is “incredibly bullish.”

You Can Now Buy Crypto With Visa and Mastercard via Binance App for Android

Siamak Masnavi

On Thursday (April 25), Binance announced that its mobile app for Android now lets you buy with Mastercard or Visa some of the most popular cryptocurrencies that are listed on

According to Binance, this support for cryptocurrency purchases via debit/credit cards, which is possible as a result of the partnership with Fintech startup Simplex that was announced on January 31, is available in version or higher of the "Binance - Cryptocurrency Exchange" app for Android.

Since January 31, it is has been possible to buy on the main Binance website ( Bitcoin (BTC), Bitcoin Cash (BCHABC), Ether (ETH), Litecoin (LTC), and XRP using debit/credit cards (Mastercard and Visa). Then, on March 12, it became possible to do the same on Trust Wallet (Binance's official non-custodial wallet app). And now, the Binance app for Android joins the party by offering the same feature.


Here is what you need to do to buy crypto via debit/credit cards on the Binance app for Android:

  • Tap on the "Credit Card" button, which is the last button on the toolbar you see in the middle of the "Home" screen. This takes you to the "Buy Bitcoin" screen.

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  • On the "Buy Bitcoin" screen, you can choose from a dropdown list the cryptocurrency you want to buy (BTC, XRP, ETH, LTC, or BCHABC), specify the quantity of a particular cryptocurrency that you want to buy, and choose the fiat currency (USD or EUR) you want to pay with.

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  • You will then be shown the total amount (including the fee) that you will get charged if you go ahead with the purchase.

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  • Once you tap on the "Buy Now" button on this screen, you will be shown a "Confirm Your Order" screen.

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  • If you then tap on the "Accept, go to payment" button on the confirmation screen, you will be taken to the checkout screen on, where you will be asked to enter into a form your personal details (email, phone number, date of birth) and your card details.

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Here are a few things you should be aware of:

  • "The crypto amount quoted is based on the current rate and is not final. If the rate changes by more than +/-2.5% you will be asked to reconfirm the transaction via email from Simplex"
  • The fee is "3.5% per transaction or 10 USD, whichever is higher."

Featured Image Credit: Photo via Screenshot Images Courtesy of Binance