break Miners Feel Pinch as Bitcoin Fees Drop, Debt Ceiling Talks Slash Tax Relief by 30%


Key Takeaways

– Recent negotiations on US debt ceiling appear to have cut a proposed 30% tax on crypto mining, providing a much needed win for miners who have been struggling with increasing hash rate and rising electricity costs.
– Revenue for Bitcoin miners has been hit hard due to the sharp decline in Bitcoin’s price over the past couple of years. Many miners have also found themselves in the red on their hardware investments due to the surge in demand, followed by a slump in demand when Bitcoin’s price fell.
– Electricity costs have only added to miners’ woes as the energy crisis triggered by Russia’s invasion of Ukraine, as well as rampant global inflation, has sent electricity prices skyrocketing.
– The Ordinals protocol recently led to increased Bitcoin fees, providing some relief for miners; however, fees have since fallen back down.
– Despite the removal of the mining tax, the road ahead is still perilous for miners. Bitcoin prices remain 60% off their highs, fees have normalised and hash power is at an all-time high.

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