Not all miners will survive the cost reduction bitcoin

How much should bitcoin cost so that mining again becomes profitable?

A 70% drop in the price of bitcoin from the middle of December practically reduced the profitability of mining. With today’s price level, falling to a minimum of $ 6,048, only the largest miners can stay afloat. But the analysis of Bloomberg shows that even among the major players not all can survive.

Today, 67% of the mining-energy is concentrated in the hands of four pools: BTC.com, AntPool, SlushPool and BTC.top. But Bloomberg analyst Tim Kulpan asserts: “If you are not the company that manages the fastest mining installations purchased at wholesale prices, then most likely you are losing money.” December’s rise increased the mining market by 40%, which led to an imbalance of the system: according to Blockchain.info, it was 51% harder to extract the block.

survive the cost reduction bitcoin

Has grown both the complexity of calculations and the amount of energy consumed. If bitcoin stopped at a 50-day moving average of $ 13,200, then with the current complexity and number of hashes, the average miner with good equipment would receive $ 80 per week (but the older the equipment, the lower the profit). However, even the most advanced bitcoin-mining installations do not protect against the risk of losing funds, when the price drops sharply, and the miner stays in the network: the miners suffer losses starting at a price point of $ 6,800.

If the price does not rise, then the average miner will lose $ 3 per week. Mining pools, such as AntPool, can remain in positive territory, but their profit will be 90% lower than with a 50-day moving average of $ 13,200.

Tim Kulpan modeled the only, in his opinion, situation, in which the mining will again become profitable: the growth of bitcoin with the mandatory release of a part of the miners from the game in order to reduce competition. The analyst is sure that all today’s participants will not be able to avoid losses: either someone will free “the mining ship” from its weight, or everyone will drown.

Cloud Mining

If you are a private person and want to mining Bitcoin and others Cryptocurrency, it’s best to do it through Cloud Mining, pay money to specialists and enjoy the benefits that big companies get. Here are the top 3 companies for Cloud Mining: HashflareIQMining or Genesis Mining


Author: Richard Abermann


Prospects of Mining in 2018

 

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