NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Latest Bitcoin Price Rally Made Mining Profitable: Analyst

Davit Babayan
Davit Babayan
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The latest bitcoin price rally pushed the cryptocurrency’s price above its average production cost, at least according to Alex Krüger.

The crypto market analyst noted that bitcoin mining difficulty increased substantially following the asset’s so-called bottom formation on December 15, 2018, in $$3,100-3,200 range. That signified that more miners were entering the bitcoin economy despite layoffs and shutdowns taking place across the horizon. Meanwhile, the breakeven cost on the December 15 bottom formation was sitting around $3,150. After deducting mining rig depreciation, the value surged to $3,850 against a $3,200 bitcoin price.

The bitcoin mining operational breakeven for efficient mining operations currently stands around $3550. pic.twitter.com/gQrNYBcvLH

— Alex Krüger (@krugermacro) April 21, 2019

But as of April 18, 2019, the breakeven costs were ranging between $3,550 and $4,350 against a $5,250 bitcoin price. That, at least, ensured a 900 dollar profit for each bitcoin mined.

Assumptions

Krüger reminded that he was calculating operating expense based on the electricity rate of 5.5 cents kWh. So, the breakeven cost could vary in line with an increase or a decrease in power rates.

“An exact number is heavily dependent on electricity cost,” Krüger added. “[For example,] last December Coingeek reported an electricity cost (inclusive of all operational expenses) of $0.073. I am using $0.055.”

Krüger power rate assumptions were lesser than what Chinese miners were paying to run their bitcoin operations. Hashage, a Sichuan-based company with six bitcoin mining farms, revealed that Chinese plants were supplying more electricity against the demand. As a result, they were paying as little as 3.5 cents kWh for hosting equipment on miners.

bitcoin mining
Source: CryptoCompare

At the current bitcoin price, and using all the Krüger’s assumptions except for the electricity rate, one can assume that miners in China are making more than $2,000 in profits after mining one bitcoin. [Note: the calculations do not include pool fees.]

Of course, the numbers as mentioned above could change with even the slightest disruption in one of the metrics. The electricity rates are not constant, but given that more than 80 percent of the bitcoin mining takes place in China, the profits mentioned above can guarantee upside balance sheets for a majority of miners.

Threats

The Chinese government lately expressed its plans to ban cryptocurrency operations. Though the decision has not matured into action yet. But the displacement for miners, that contribute more than 90 percent hash rate to run the bitcoin blockchain could bring interim trouble. Miners could be forced to look for other domiciles in the regions, the nearest being Mongolia or Hong Kong (it’s pretty expensive, though).

The huge hash rate deficiency left by the Chinese miners could pose opportunities for other countries. For instance, Bitfury, one of the only non-Chinese bitcoin mining farm operating from Georgia, could accelerate operations to control the bitcoin blockchain. Meanwhile, countries like Iceland and India could also start mousetrapping a portion of bitcoin mining distribution thanks to their affordable costs.

Tweet123Share351ShareSend
Davit Babayan
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

gamestop-inspired-a-lingerie-mma-league-to-buy-bitcoin-subbd-token-soars

GameStop Inspired a Lingerie MMA League to Buy Bitcoin: SUBBD Token Soars?

Shaun Donelly knows a hot item when he sees one – and Bitcoin’s the hottest item of them all. The...

Aaron Walker 3 hours ago
qwatio

Ο «κακότυχος» trader ‘qwatio’ έχασε $12,5 εκατ. μετά από 8 ρευστοποιήσεις σε μία εβδομάδα

Ένας άτυχος trader με το ψευδώνυμο “qwatio” βρέθηκε θύμα της κρυπτο-αγοράς, χάνοντας $12,5 εκατομμύρια από υπερμοχλευμένες θέσεις σε Ethereum και...

Ανθή Ντόνκοβα 4 hours ago
BitMine

BitMine Stock Soars 700% After $250 Million Raise For Ethereum Treasury

Tom Lee, the market strategist known for his insightful predictions on Bitcoin (BTC) and broader crypto prices, has taken on...

Ronaldo Marquez 4 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

bitcoin

Bitcoin Network Volume Echoes Mid-2021 ‘Stable Equilibrium’ – Is A Big Move Brewing?

Ash Tiwari 24 minutes ago
Ethereum

Ethereum Indecision Masks A Bullish Setup – Here’s Why BTC Holds The Key

Godspower Owie 1 hour ago
Bitcoin

Here’s What Will Happen If The Bitcoin Price Can Manage A Clean Break Above $108,500

Scott Matherson 2 hours ago

Premium Sponsors

Press Releases

  • 今が狙い目の割安アルトコイン特集|注目すべき銘柄をチェック!

    ...

    4 hours ago
  • 仮想通貨プレセール終了間近|上場価格で購入できる最後の7日間がスタート

    ...

    4 hours ago
  • From traditional mining to smart contract mining, XRP...

    4 hours ago
  • 初の国家デジタル通貨銀行で銀行業界が新時代へ:今買うべき仮想通貨おすすめとは?

    ...

    5 hours ago
  • 新しい仮想通貨プレセール開始|次世代の革新的ミームコインが登場か?

    ...

    5 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

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

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 exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. 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.