The latest report by the Fundstrat’s Tom Lee explains that BTC Bitcoin mining earnings are on the way to breaking even. This is due to the fact that this activity is now less profitable a move which has been pushed by the current markets decline. This is according to the CNBC report on March 15.
According to the contents of the report, the current figure for the mining of one Bitcoin is at $8,038. On the other hand, the price of Bitcoin is at $8,221. This process was done a quarter of a percent in a 24 hour period. This is according to CoinMarketCap.
Fundstrat which is a model used in the calculation of mining costs for BTC included equipment cost, overhead costs and also the electricity costs. Additionally, according to Dam Doctor, the cost of replacement is relatively higher. This is because it takes more than half of the mining overall costs.
Additionally, miners also earn income from transaction fees which are now falling. According to BitInfoCharts, the median fees for transactions on March 15 were $0.12 and last year Dec; this cost was $34. Therefore, Charlie Hayter who is the CEO of cryptocompare said that the miners are now earning half of what they were making in December. This has been due to the BTC mining popularity.
Therefore, according to the Fundstrat’s doctor, miners will stop the mining operations in case the price of Bitcoin falls to the $4,000 or $3,000 level. He further added to Bitcoin mining broken even in 2015 January when the price of one Bitcoin was around $200 and $300. However, CNBC wrote that the Chinese miners would continue with their operations even when BTC drops to a price level where they would lose money.
On the other hand, due to the mining costs of cryptocurrencies, some of the critics have a worry that the negative impacts on the environment might outweigh the profits. Therefore, cointelegraph reported that there are options such as renewable energy. This is a positive benefit to the cryptocurrencies and could bring that unbanked countries with hyperinflations such as Venezuela. Therefore, use of renewable energy poses a non-issue to electricity management.