BTC Costs Below $8K Could Spell Disaster for Bitcoin Miners

Fundstrat’s Tom Lee explains his staff has devised a model that incorporates multiple facets such as equipment performance and cost, electric expenses, and other kinds of overhead. The Fundstrat research report explains:   

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According to a research conducted by Wall Street analyst, Tom Lee’s bureau, Fundstrat, BTC prices below the8K range make it awfully difficult for miners to acquire revenue. Lee details that in a global average rate of six cents per kilowatt-hour, a few BTC miners are either breaking right today or mining the cryptocurrency in a reduction.

The research model is based on a worldwide average of 6 cents per kilowatt-hour. There are some areas in the world including China that offer far cheaper electric prices. China’s prices for electricity could be 4 cents or less per kilowatt-hour. Other regions on earth that offer cheaper methods of electricity production like hydropower can also offer competitive prices as well.

BTC Prices Below $8K Not Good for Some Miners
25 exahash per second

The last time BTC miners suffered from break-even rates and even losses was around January 2015 if the cryptocurrency started climbing above $200 per coin. Coincidently it indicated the end of this year-long 2014 bear conduct when BTC was appointed “worst money of this year”
There are also other motives involved with the reduction of BTC mining revenue apart from the 60 percent fall in value. Prices have dropped per transaction as well which is another kind of revenue for miners. Back as soon as the price was around $18-19K fees were also astronomical since the average median transaction fees were up of $30-40 USD each 226-byte transaction. The normal BTC fee has been relatively lower as today on March 17 is 1 per transaction according to Bitinfocharts. According to charts mining revenue peaked on December 15 one day earlier BTC touched a worldwide average of19,600 USD.

Divide Even Revenues and Outcomes

BTC Prices Below $8K Not Good for Some Miners

What can you consider miners breaking or enduring losses? Let’s know what you consider this topic in the comments below.

Also See: New York Power Companies Can Now Raise Prices for Bitcoin Miners   

Released at Sun, 18 Mar 2018 10:30:09 +0000
Things were much different then since there weren’t as many miners vested in the match back then since the network was working at less than one exahash per second. A great deal of miners have skin in the game today as the BTC network has exceeded 25 exahash and the average recently is generally 20. Lee’s model particulars that should miners see costs around $3-4K per BTC then a lot of miners will likely be made to shut machines down.
Bitcoin currently transactions basically in the break-even cost of mining a bitcoin, currently at $8,038 based on a mining prototype manufactured by our information science group.

25 Exahash: How Far More Miners Have Skin in the Game

BTC Prices Below $8K Not Good for Some Miners
The Purchase Price of BTC on March 17, 2018, 11:20 pm EDT.

Competing With China Means 4 Cents or Less

The amount of bitcoin and several hundred other cryptocurrencies are suffering from the biggest drop in value in well more than a year. 2017 was be phenomenal run the whole season but after the new year, things started looking very bearish. BTC’s value, in particular, is hovering just above the7,500 zone in the right time of writing and in the global average some miners are mining bitcoin at break-even expenses or even conducting operations in a reduction.