Is the Bitcoin mining industry on the verge of collapse? Here's what the experts think

Many BTC miners are in a difficult situation, some may even stop their operations. But according to experts, the industry is here to stay

• Bitcoin mining is based on very delicate balances: miners face operational and capital costs, unexpected repairs, delays in product shipments, as well as unclear regulations that can vary from country to country. In addition to this, in the last year the price of BTC has gone from a high of $ 69,000 to a minimum of $ 17,600. Despite the fact that BTC is currently down 65% from the all-time high, the general consensus among miners is to keep calm and continue to accumulate: but that does not mean that the minimum of this bearish cycle has already been reached. In an exclusive panel organized by Cointelegraph and dedicated to mining, Nick Hansen, CEO of Luxor, commented: "There will certainly be a capital crisis among listed companies, and not only. There will likely be nearly $4 billion worth of new ASICs that will have to be paid as soon as the new products are launched, and that capital is no longer available." Hansen continued: "Hedge funds can collapse very quickly. I think miners will take 3 to 6 months to explode. We will see who has good operations, who can survive this environment characterized by very low margins." Regarding the upcoming challenges and expectations for the future, Magdalena Gronowska of PRTI Inc. commented: "One of the biggest challenges we have faced in this transition to a low-carbon economy has been insufficient investment in technology and infrastructure by the public and private sectors. What I think is really amazing about Bitcoin mining is that it is introducing a whole new way to subsidize the development of energy and waste management infrastructure. They are systems that go beyond the traditional paths of taxpayers or electricity suppliers, because they are based on an extremely elegant economic incentive regime." Will Bitcoin destroy the environment? The panel then moved on to the environmental impact of BTC mining, and the widely held idea that such activity poses a threat to the planet. Joe Burnett, an analyst at Blockware Solutions, said: "I think Bitcoin mining isn't harmful to the environment, period. If anything, I believe that it encourages greater energy production and the construction of a more reliable and resilient electricity grid. It will probably even reduce the cost of energy for people in the long term. [...] Bitcoin mining rewards those who can produce cheap energy, and this is good for all of humanity." Will industrial mining drive the long-awaited "mass adoption" of cryptocurrencies? Regarding Bitcoin's dominance of the mining industry and the future of industrial mining, Todd Esse, CEO of Hashworks, said: "I believe that, in the future, most of the mining will take place in North America and the Middle East. To a lesser extent even in Asia, depending on how much they will be able to cut costs. It depends a lot on the availability of natural resources, and consequently on the cost of energy in the region." Although it can be assumed that the growing synergy between large energy companies and Bitcoin mining will increase the validity of BTC as an investment asset, thus promoting its mass adoption, Hansen disagreed: "We can't say for sure. But surely it will be something that will transform everyone's life, whether they know it or not. Eventually everyone will become buyers of last resort, or of first instance since they will consume energy. Bitcoin mining will transform energy, energy markets, the way it is produced and consumed. And, overall, I believe it will significantly improve the human condition over time."