I think we all know the fact that BTC mining consumes lot of electricity and many cities/countries are banning Bitcoin mining or charging heavy bills. The cost of mining is rising, places to mine are become less. And this will only get worse as the mining difficulty will rise. And not only that, as per this Cointelegram post, the profit margin has drastically lowered.
https://cointelegraph.comHow do you think this will impact Bitcoin mining and Bitcoin itself. Do you think mining will become way more centralized due to this? Do you think mining difficulty will be brought down (I know this option is almost impossible)? Maybe we will have new mining hardware? Or mining will become a loss service and there will be almost no Bitcoin miners left?
I would really like to hear your opinions on this topic.
Gradually mining is becoming more expensive is not something we are just hearing with the continued increase in cost but one thing I know is that so far the profit margin has not turn to zero, there will always be people mining only that they will be ready to accept lower margin and the high margin they have enjoyed in the past would at least console them for now. On the centralisation of mining, even though that is not what we wanted but eventually that is what we have to face but there is a consolation there too in that it gives room for other people to focus on other areas in making bitcoin better rather than everybody relying on mining.
In short, this is another major challenge that will happen in crypto but I am just optimistic that it would be settled just like the era of high fees when it seems its never going to reduce but it has happen with the lightening network and SegWit, the attention has shifted to another area.