BTC Mining Becomes Profitable Once Again, Are The Bulls Back?

BTC mining is now profitable once again according to Alex Kruger, an economist, an analyst who explained further on the subject. Following the coming altcoin news, the breakeven cost for the operations will lower down.

Across the international markets, the price of the number one cryptocurrency is now at $5,265 which shows that miners make a slight profit per each block that is mined. BTC Mining is now at the breakeven price of $3,550 and a possible appreciation of the cryptocurrency.

Kruger provided the analysis that shows the rate of electricity is now at $0.055 per kWh depending on the region where the process is happening. For example, CoinGeek reports an electricity rate of $0.073 per kWh to mine proof-of-work cryptocurrencies. This will increase the breakeven cost of the mining process. The analyst described further:

 “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’ avg operational cost is $0.073 /kWh, resulting in $3580 operational breakeven (assuming used to mine BTC not BSV).’’

During the second half of 2018 especially in the last few months, the breakeven cost of BTC mining dropped below the price of Bitcoin which meant more net losses for the miners on their operations. The miners continued to operate during the bear market since many of the operations secure long-term energy deals which require expensive ASIC equipment.

Andreas Antonopoulos, the popular crypto security expert, explained that bitcoin could seize to exist if it leaves the BTC mining protocol:

 “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. 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.”

However, many of the miners continued to secure the bitcoin blockchain network during the BTC mining process across the prolonged bear market. Now it seems that the entire process is profitable if the price does not drop below the $4,000 price point in the near term.