According to Alex Kruger who is a prominent economist and crypto analyst, 2019 Bitcoin mining is more than just a hot topic. As the global market analyst noted, the breakeven cost for efficient Bitcoin mining operations right now hovers around $3,550 while Bitcoin is in the $5,000-plus zone.
Kruger is in the latest cryptocurrency news because of his tweet which comes with a screenshot about the efficient BTC mining estimate.
The bitcoin mining operational breakeven for efficient mining operations currently stands around $3550. pic.twitter.com/gQrNYBcvLH
— Alex Krüger (@krugermacro) April 21, 2019
The exact Bitcoin price right now is at $5,265 proving that the 2019 Bitcoin mining is definitely profitable because of the rally – which for miners presents a substantial profit for every block that is mined considering the break-even price of $3,550 and the potential appreciation of the most dominant cryptocurrency.
Kruger said that the 2019 Bitcoin mining is also linked to the CoinGeek reported rate of electricity which is now at $0.073 per kWh to mine proof-of-work (PoW) cryptocurrencies like Bitcoin. This altcoin news included Kruger mentioning the following back in December 2018:
“CoinGeek is negotiating to sell its miners (62k units with 960k TH/s) and other assets (e.g. https://coingeek.com) for $45.5 million. Miners’ average operational cost is $0.073 /kWh, resulting in $3580 operational breakeven (assuming used to mine BTC not BSV),”
Over the second half of 2018, however, the breakeven cost of Bitcoin dropped below the BTC price, leading to inefficient Bitcoin mining and net losses on the operations by miners. Many of them had to continue operating through the bear market, however, mostly because a lot of operations include long-term energy deals with electricity providers, a lot of ASIC equipment and long leases to operate large-scale Bitcoin centers.
According to Andreas Antonopoulos who is another recognized crypto expert and analyst, there is a “death spiral” theory which argues that Bitcoin could seize to exist if all of the miners leave the protocol. As reported by many best cryptocurrency news sites, Antonopoulos commented the 2019 Bitcoin mining stating:
“Part of the reason that’s unlikely to happen is that miners have a much more long-term perspective. Meaning that, they have existing investments in equipment and they usually purchase electricity on long-term plans, they don’t pay it by the week.
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And therefore, if they have to wait to become profitable another three months and they have the equipment in place, they’re not turning it off.”
Meanwhile, the Bitcoin mining is also profitable because of the sentiment of Bitcoin which is now improving.
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