Bitcoin mining difficulty increases after each halving, so are bitcoin mining companies profitable?
As you know, after each bitcoin halving, miners' rewards decrease and mining becomes increasingly difficult.
This will cause the cost of mining bitcoin to increase
If more bitcoin mining farms spring up, the reward will be less and the difficulty of mining will increase, increasing the cost of mining
Combined with the increased pressure to release bitcoin from miners, BTC price is under a lot of pressure to release
If the bitcoin price is as low as it is now, miners will not make a profit or even lose money
The cost of mining BTC in different locations is pictured 2 3 4
So what will happen?
Bitcoin mining companies cannot afford the mining costs, leading to bankruptcy or dissolution
The number of miners is decreasing day by day until it reaches a certain threshold
When some mining farms go bankrupt, it means that there are fewer people mining bitcoin and fewer people mining bitcoin, the reward increases and the speed at which 1 BTC is mined increases, the cost of mining decreases due to the decrease in mining difficulty.
Plus, the pressure to release bitcoin decreases due to fewer miners, causing the price of BTC to not be under strong pressure to release, which helps BTC increase in price
Mining camps are profitable again
Seeing that many mining camps were profitable, other mining camps sprang up
The cycle repeats again and again
That is its 1 cycle
This is my thinking, I don't know if it's right or wrong. I invite experts to comment