Last week, it was reported that Bitcoin miners sold 11% more coins than they generated during the same period.
According to data from June 1 from the chain analysis portal ByteTree, there was an oversold of Bitcoins. In other words, miners sold 11% more cryptocurrencies than mined ones.
According to the portal metric that tracks the Bitcoin wallet addresses associated with mining companies, around 5,800 BTC has been generated in the past seven days, compared to more than 6,500 transactions since the "first spend."
The “first expense” used for the calculation is “the first time a Bitcoin leaves the wallet in which it was generated,” a ByteTree spokesperson explained to Cointelegraph, detailing how its metric works in more detail:
“The miner's wallet can belong to an individual, a company or a mining group. When the coins are generated by the miners and appear in your wallet, they are counted as 'generation'. These coins can remain in the miner's respective wallets for days, months, years, or forever. It depends on when they want to move the coins. If these coins are generated by a mining group, the coins will either be distributed to the group's subscribers (ie paid in BTC) or sent to an exchange at some point to cover the operational costs of the operation. ”
It could be anticipated to call it "capitulation"
Crypto Twitter commenter Conner Brown used this data to argue that inefficient mining companies were capitulating , but some experts caution that the term "capitulation" may have different meanings.
Thomas Heller, F2Pool Global Commercial Director, told Cointelegraph that even when mining with certain equipment is useless due to increasing difficulty, miners often sell their machines to places where electricity is cheaper, rather than quitting the game. .
"Since these older machines are no longer profitable for mining with electricity prices in China, Canada, the United States, or Europe , they end up elsewhere, such as Kazakhstan, Russia, the Middle East, and South America, " Heller said, concluding:
"Until now, in 2020, there have been very few cases of mining farms closing."
As has been stated on previous occasions, Bitcoin's halving affected the network in several ways , as hashrates, block times, fees and revenues have changed considerably as a result of the event.
To reduce difficulty levels and provide levels of mining efficiency like pre-halving, industry leaders are launching a new generation of mining hardware like Bitmain and MicroBT. Today Bitmain released its new ASIC Antminer T19 Bitcoin Mining, which is supposed to start launching in late June.