Citigroup: by 2022 Bitcoin mining can become unprofitable

According to the Citigroup research, by 2022 Bitcoin mining will be profitable only with BTC price above $300 000
10 November 2017   1945

In five years, the bitcoin mining will become absolutely unprofitable because of the too rapid growth in the prime cost of the first cryptocurrency. This conclusion was reached by analysts of financial conglomerate Citigroup, reports Bloomberg.

According to the analyst of the company Christopher Chapman, by 2022, mining will be cost-effective only with a bitcoin cost above $ 300,000. By the same time, the total electricity consumption for bitcoin production will be equal to the consumption of all Japan and will be limited to the governments.

We don’t think that those levels of mining can be reached, and that governments will regulate/tax miners as a way of reducing the power consumption.
 

Christopher Chapman
Analyst, Citigroup

Bitcoin Bulls
Bitcoin Bulls 

It is noteworthy that the expert also believes that the cryptocurrency community will have to change the earnings model and switch to the Proof-of-Stake algorithm. In this case, the winners will be participants, who initially had more cryptocurrency.

As the current arms race is not in the interests of established miners we think that the BTC network may move to a proof-of-stake model; particularly if such a change is implemented by major rival ethereum. Such a move would not be uncontentious, but may be necessary for the survival of the currency.
 

Christopher Chapman
Analyst, Citigroup

 

Miners Arrested in 2 Chinese Cities For Power Theft

Six people were detained in Tianjin and two in Wuhan
25 April 2018   91

Bitcoin miners were arrested in two Chinese cities on charges of stealing electricity. This is reported by CoinDesk.

In the first case, 6 people were detained in Tianjin. The suspects used 600 devices for mining bitcoins that were connected to a local substation. The police claim that the connection was made bypassing the counters.

The investigation was initiated after one of the electric power companies discovered a discrepancy between the actual and claimed consumption of electricity.

The police seized all equipment for mining, as well as 8 powerful fans.

Events are taking place while China continues to play a dominant role in the mining of bitcoin, despite the pressure on the cryptocurrencies. As Xinhua notes, this case of electricity theft turned out to be the largest in recent years.

According to another report, which appeared today on the website of the Supreme Prosecutor of China, two more suspects were detained in Wuhan. They also stole electricity.

The detainees used empty stores since March 2017 to house miners and did not pay for electricity, as did the defendants from Tianjin.