Opinion: Bitcoin mining hash prices are much lower than a year ago, but crypto mining companies are still facing challenges

Odaily News Nick Hansen, CEO and co-founder of Luxor Technology, said that despite the current relatively positive Bitcoin price action, this effect is not necessarily reflected in the crypto mining industry. This is because the economics of mining are affected by a variety of factors beyond the price of Bitcoin. Hansen noted that in this case, the more relevant metric to watch is the hash price, which is around $56 at press time. Hansen elaborated that the hash price takes into account the price of Bitcoin, but also includes mining difficulty and transaction fees charged by miners, "In the past 3 months, the hash price has hovered between $40 and $50, compared to around $80 a year ago, which is twice the former." Hansen said this shows that although the price of Bitcoin has been rising, the economics of mining are relatively challenging. Jeff LeBerge, director of capital markets and strategic initiatives at Bitdeer Technologies Group (NASDAQ: BTDR), believes that Bitcoin’s new high is definitely a relief, “because increased profitability usually incentivizes more hash rates to come online, and previously unprofitable new miners or less efficient old miners can now be put back into use. As the industry continues to move toward commoditization, efficiency will become increasingly important in the next cycle.” (Cryptonews)