DMG Blockchain Solutions calculated the price of bitcoin, below which the mining will become unprofitable. According to analysts of the company, the point is at the level of $ 2400. This is reported by The Merkle.
We outline the simple math for mining bitcoin on an operating basis (i.e. excluding capital costs), with a market assumption of 7c per kW-hr operations costs (mainly electricity). With the below calculation, the cash breakeven is currently about $2,400 – this is far below the current price. Generally capital moves around to mine the most profitable coins, which means that the market generally finds profitability equilibrium among mined coins in the long run.
VP, DMG Blockchain
Every day the bitcoin network generates about 2100 coins. The DMG calculated that the earnings for 1 PH / s is 0.084 BTC. If the price of electricity does not exceed the specified 7 cents, and the bitcoine rate is above $ 2,400, then the mining is profitable, the company is confident.
However, it should be emphasized that in order for the model to work, it is necessary to observe ideal conditions. Moreover, not every miner can afford to produce 1 PH / s. The study, however, indicates that the major mining companies are currently confidently on their feet.