Alex Krüger, a market analyst, and crypto trader stated that the breakeven price for effective bitcoin mining procedure presently hangs at approximately three thousand five hundred and fifty dollars ($3,550).
The current bitcoin price across the main crypto markets is five thousand two hundred and sixty-five dollars ($5,265), presenting a handsome profit per block for miners as currently, the breakeven price is three thousand five hundred and fifty dollars ($3,550).
During the analysis, he considered the electricity rate at $0.055 kiloWatt per hour (kWh). However, the rate can vary depending on the region.
For example, Alex stated that the rate of electricity to mine’s proof-of-work (PoW) for virtual currencies, i.e., bitcoin is expected to raise the cost of Bitcoin mining. Furthermore, the breakeven price of Bitcoin further fell down the genuine cost of BTC, presenting miners with record damages on procedures.
Majority of the miners kept on operating during the slow market days as the operations ensured durable contracts with the providers of electricity, helped in gaining costly ASIC paraphernalia, and attain prolonged leases to run Bitcoin centers across-the-board.
In the previous year, Bitcoin mining was principally loss-making because of Bitcoin cost drop. A renowned security and crypto market professional-Andreas Antonopoulos held that the death spiral theory that contends that it is hard for miners to relinquish their tasks after their initial pledge to it.
The bitcoin mining operational breakeven for efficient mining operations currently stands around $3550. pic.twitter.com/gQrNYBcvLH
— Alex Krüger (@krugermacro) April 21, 2019
Intrinsically, multiple miners sustained in securing and protecting the Bitcoin blockchain network by mining through the vicious 16-month slow market.
Now provided that Bitcoin mining market is going to turn and start money-making again, assuming if the Bitcoin cost does not fall beneath the $4,000 mark, more miners can be expected to seek entrance in the space for mining preceding to crypto block incentive sharing which is planned to befall next year.
After block sharing is implemented, the rate of production of new coins will decline hence resulting in decreased profit for the miners.
Since the bitcoin price usually rises after the build-up of a block prize sharing as it lessens the supply of bitcoin in exchanges and markets, thus ending miners up in a good spot.
It is hard to decisively claim that the viability of Bitcoin mining meritoriously signals the culmination of the correction of the crypto market. But, a strong mining system will definitely enhance the gush around the market. In addition, Bitcoin has always exposed a flight before a reward sharing.