It takes more than ever to mine a single Bitcoin now – and the break even barrier keeps getting higher…
by Manoj Sharma for CNR
This year was rough for crypto investors with the collective value of all crypto assets declining by over 80% in the past eight months. Despite this, cryptocurrency miners have still been boosting their investment in coins, and the harvesting of them. But even that isn’t without growing challenges.
The strategist and analyst of Fundstrat Global Advisor, Sam Doctor, recently tweeted that the hashrate of the Bitcoin network has doubled over the past four months. The hashpower increased from 28 quadrillion EH/s to approximately 57 EH/s. He added that the break even cost of mining one BTC is now $7300 compared to $6000 in May 2018.
Sam’s claim was immediately backed up by Thomas Lee, Fundstrat’s head of research and a well-known crypto proponent. Lee retweeted to let his 56.8k followers know that the figures were valid.
Lee, who has often conveyed his bullish sentiments on CNBC’s crypto-related segments, has claimed that the break-even cost of mining has a potential hard bottom for the foremost crypto asset.
Moreover, the Bitcoin permabull has also noted that Bitcoin often trades at upwards of 2.5x over its break-even mining cost. Apparently, this was seen during the bull run in 2017 as well as over the course of Bitcoin’s history.
Keeping this in mind, it is evident that the executives at Fundstrat Global Advisor still see a better potential of the crypto assets that has long been dubbed “digital gold”. But also, that mining is a trickier business than it once was.