LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
No Result
View All Result
LBN HandCash Lightning Network
Bitcoin Mining

Fundstrat Analyst Says the Cost of Mining Bitcoin is No Longer Profitable

by Rebecca Campbell
March 16, 2018
in Bitcoin Mining
Share
logo

Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000

Sign up

Some estimates are suggesting that it’s no longer profitable for miners to produce bitcoin, with March earnings half those of December’s.

In a report from CNBC, Thomas Lee, managing partner and head of research at Fundstrat Global Advisors, said:

Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team.

Fundstrat looked at three things: the cost of equipment, electricity, and other overhead such as maintaining cooling facilities.

In recent weeks the value of the cryptocurrency market has slumped considerably. Earlier this week, it was reported that an upcoming advertisement ban related to digital currencies on Google, a massive selloff of bitcoins from Mt Gox, and regulatory pressure were the three major factors affecting market prices. As a result, the price of bitcoin fell to a low of $7,800 during early morning trading yesterday.

With the cost of mining bitcoin considerably expensive, many may lose the incentive to continue mining if the cost to produce a new coin outweighs the reward. This is certainly the thinking from Shone Anstey, co-founder and president of Blockchain Intelligence Group, who said:

In some cases the miners may simply turn off the machines until the price comes back a bit. It’s got to be getting to the point that some of them may be losing money.

Not only that, but it seems that miners’ earnings halved this month compared to December as interest in bitcoin mining rose, according to Charlie Hayter, CEO of industry data site CryptoCompare. Not only that, but transaction fees have also dropped, another avenue where miners make money. In late December, a median transaction fee was as high as $34; however, at the time of publishing it is just above 20 cents, according to data from bitinfocharts.

Recent research has also shown how expensive it is to mine bitcoin in a list of 115 countries. Earlier this month, Elite Fixtures, compiled data that illustrated that South Korea is the most expensive country to live in to produce one bitcoin, costing $26,170. The least expensive country is Venezuela, with a price tag of $531.

According to Fundstrat, miners should start shutting down their computers when the price of one bitcoin is around $3,000 to $4,000 per coin.

Related Posts

Bit Deer Opens New Crypto Mining Firm in Bhutan
Bitcoin Mining

Bit Deer Opens New Crypto Mining Firm in Bhutan

Bit Deer Technologies Group is opening a new crypto mining facility in the Asian country of Bhutan. Bit Deer...

by Nick Marinoff
September 26, 2023
Texas Residents Aren’t Happy About the Influx of New Crypto Miners
Bitcoin Mining

Texas Residents Aren’t Happy About the Influx of New Crypto Miners

Texas has garnered a reputation for being very pro crypto. The state opened its borders to several miners from...

by Nick Marinoff
September 7, 2023
Many Bitcoin Mining Facilities Are Trying to Go Green
Bitcoin Mining

Many Bitcoin Mining Facilities Are Trying to Go Green

There are several bitcoin mining facilities out there working hard to reduce the number of emissions they produce. Bitcoin...

by Nick Marinoff
August 19, 2023
Bitcoin Mining Hardware Manufacturer IPOs in 2018 Looking Unlikely
Bitcoin Mining

Vilonia, Arkansas Could Soon Be Home to a New Chinese Crypto Mining Facility

A China-owned crypto mining facility could be built in the rural town of Vilonia, Arkansas, and the residents aren’t...

by Nick Marinoff
August 4, 2023

Top Casinos

Crypto Casinos
Crypto Casinos
Bonus Finder
Bonus Finder

Press Releases

  • Tether Uplifts Crypto World with 750M USDT Swap from Tron to Ethereum

  • 1xBit Rockets into the Future: Welcoming Algorand and Arbitrum as Novel Deposit Methods!

  • Ibiza NXT 2023 – Heading toward a purpose-driven Web3 innovation journey

  • Alaya: The Pioneer of Artificial Intelligence Data

  • Zeebu Secures $25 Million in Presale Funding for World’s First On-chain Invoice Settlement...

About us:

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. We cover BTC news related to bitcoin…

Follow us:

  • This field is for validation purposes and should be left unchanged.

  • About
  • Partners
  • PR
  • Advertising
  • Privacy
  • T&C
  • Contact
  • Trading Software
  • Online Casinos Germany

© 2023 Live Bitcoin News. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise

© 2023 Live Bitcoin News. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.
Go to mobile version