- Both 2018 and 2019 have been well known in the space and for a lot of reasons.
- The whole mining industry nearly stopped in 2018 because of multiple different factors.
Both 2018 and 2019 have been well known in the space, and for a lot of reasons. The incredible crypto highs and depressing crypto lows are just a few of the reasons.
One thing that has remained consistent through the years though, is the fall in the profitability of Bitcoin mining. The whole mining industry nearly stopped in 2018 because of multiple different factors.
So with this all in mind, we’re going to look at whether Bitcoin will ever recover in the next decade, specifically, 2020.
The factors we need to consider are as follows:
- Rising energy prices
- Falling Bitcoin prices
- Rising hardware prices
We’re going to look at these factors over a few articles so make sure to keep an eye out for the rest!
For now, let’s take a look at the bitcoin price…
The biggest problem with mining over the past few years has of course been a fall in the value of Bitcoin. At the end of 2017, Bitcoin touched around $20k, before falling below $4k during November of 2018. This fall from grace was a hard hitter for many investors and traders.
In 2017, half of a mined BTC could have been worth around $8k, back in November 2018 though, the same amount of Bitcoin may only have been worth $2k. There is a solution to this that will make mining profitable again and the solution is simple - the value of Bitcoin simply needs to climb.
Easier said than done but when this happens, profit margins grow and finally, the increased energy prices won’t have such a hard effect on those trying to mine the leading cryptocurrency. Instead, the energy prices will once more be on level with the value of the Bitcoin mined. The challenge then will be in ensuring Bitcoin remains at that higher price, as, while it does, mining will generate great profits once more.
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