Published
5 years ago on
September 18, 2018
“Doctor’s analysis also showed that the break-even cost of mining one BTC is now $7,300 compared to $6,000 in May. This calculation includes the depreciation costs of mining equipment and suggests the “fair price” of Bitcoin. Given this information, the cost of mining one BTC is roughly 12% higher than the coin’s current price of around $6,300.”Importantly:
“The high hashrate is a positive indicator, as it means that the cryptocurrency blockchain network is stronger and more resilient to attacks. The increased mining difficulty, especially amid bearish crypto market sentiment, also indicates the miners’ belief that BTC will appreciate in the future. However, it is hard to estimate whether miners are selling immediately to cover costs, or stockpiling coins.”It’s evident that those who are mining Bitcoin do believe that Bitcoin still has a very prosperous future ahead of it. They believe Bitcoin will surge again and as a result of this, continue to mine and improve the network. Increased security and a stronger network means for safer investments which in turn will encourage new investors and may even allow us to see institutional interest. Institutional interest being the key needed to unlock the next level for Bitcoin, both in terms of price and in terms of its ‘adoptability’. References Cryptovest Investment Disclaimer
