Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by JayJuanGee (1)
I have roach on ignore but would be happy to counter his misinformation in this instance. Bitcoin (per coin on average) costs anywhere between $1,300 and $37,400 to mine depending on where you are in the world. As you can see, mining is prohibitively expensive in much of the world (this is based on today's prices):
https://coinrate.com/cryptocurrency-mining-prices-and-profitability-by-country-in-realtime
And yes, not anybody can just start up their own mining operation to get "cheap coins." Most mining farms operate in the red for months or years before turning a profit -- they are invested in the long haul and weather unprofitable periods on the bet that the price of BTC will continue to increase in the future.
Besides, roach should know as well as anybody that the market dictates prices. This is what gives BTC - like any traded good in the world - its premium.
aside from other valid arguments, this picture cannot be right, and even if it is for whole countries, at least in US, there are much-much cheaper regions where you can mine for much less.
With S9, you mine at break even right now at about 15.56c/Kwh.
https://www.cryptocompare.com/mining/calculator/btc?HashingPower=13.5&HashingUnit=TH%2Fs&PowerConsumption=1350&CostPerkWh=0.156&MiningPoolFee=1
US average is 12c, so you do the math (my calc (12/15.56)X12000=$9254/btc mining breakeven cost after recouping fixed cost for S9 at the average US electricity cost).
Besides, we are talking about a machine that is a three year old tech. Newer machines have at least twice as better profitability, but they are still rare.
That said, miners also need to recoup their fixed cost (machines), so as far as P/L, the numbers are probably higher.
For example, current S9 (on ebay) will recoup it's cost (at 12c) in about 10 mo, but more realistically, later, due to difficulty increase.