Coinshares has calculated the rate of Bitcoin, in which its production makes a profit to miners.
The research organization Coinshares has published a regular report for the first half of the year, which assesses the situation in the mining industry cryptocurrency . As Christopher Bendixen, head of the organization's research department, points out, the bitcoin mining break-even point at the moment is about $ 3,300. As long as the rate stays above this mark, BTC mining will be profitable.
9 / Cash flow breakeven levels are also healthy at about $ 3,300 (assuming 5 / c / kWh and 15% additional C & O OPEX).
If you’re a bitcoin
(some before)
– Christopher Bendiksen (@C_Bendiksen) June 6, 2019
Only if the price of Bitcoin falls below this level, miners can seriously think about stopping work on their ASIC class equipment. This figure makes sense when the price of electricity is 5 cents per 1 kW.
If we include corporate and other expenses, then the financial break-even point of mining bitcoin will then be a large amount, namely $ 5,700.
8 / Unsuprisingly, miners ROI breakeven levels at about $ 5,700 (assuming 18-month depreciation, 5 / kWh, and 15% additional C & O OPEX).
What does that mean for profitability? I'll let you do the math … ??
– Christopher Bendiksen (@C_Bendiksen) June 6, 2019
This figure appeared taking into account the cost of depreciation of equipment, as well as if all overhead costs are taken in proportion to the cost of direct costs at a level of 15%.
Such “overheads” include various miners' expenses, which include such items as room rent, ventilation costs (room conditioning), payroll, and, if the miner is connected to the pool, then the commission for participation in mining the pool .
As a result, the report concluded:
“At the moment, when Bitcoin is again at around 8 thousand dollars, the average miner is extremely profitable. And even those who work on old equipment and have high costs, for example, on electricity, now have the opportunity to still go to a positive return on invested capital, that is, on ROI. ”
Coinshares also drew attention to the fact that the mining industry in the world uses electricity mainly (74.1%) from renewable energy sources, which is on average four times higher than the average in the world if you consider any other sector of the global economy.
The large consumption of electricity by miners, which over the past six months has grown by 400 billion gigawatts, to 4.3 gigawatts per second, suggests that miners are able to revive the state economy. First of all, it concerns those countries where there is a developed alternative energy, when electricity is obtained due to the energy of thermal water sources or due to its kinetic power in hydroelectric power plants, or through the operation of wind power plants and solar panels.
Conclusions Coinshares confirm that the market for mining equipment will only grow.
Publication date 09/06/2019
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