How much does it cost to mine one Bitcoin? This is the most important question for an investor interested in starting to mine Bitcoin. The answers is not one universal price. It depends on the country and the area where the mining facilities are built. Nevertheless, most research indicates the cost varies from around 4,000 USD to even $10,000 in some countries. Very few countries have been able to keep the price under $4,000 USD, like China did.
The next question is this: how much is one Bitcoin. By the time this text is being composed (December 6th, 20:00 Global Crypto Time), the trading price of 1 Bitcoin is $3,678.27. In almost no country of the world you can mine Bitcoin for this price or for less than this price. And analysts, at least most of them, don’t seem to expect a sudden rise in price anytime soon. Is this bad for Crypto in general?
One sees, as of today, miners selling their precious mining equipment in the Internet, for ridiculous prices. Some of these are super retail prices —not to call them dump prices— of just 20% or 30% the original price. Also the companies that produce mining tools, like the popular Avalon Miner 921, are starting to offer special prices of less than 50% the original price. Mining seems to be a bad business now.
Some reports have talked about the retirement or abandonment of mining of more than one millions miners, only in Bitcoin. This, naturally, implies, BTC has a lot less hashing power. It is thought that that this can make the Bitcoin network less stable, less quick and even less secure, since it is theoretically more vulnerable to a 51% attack.
Asked about this phenomenon, during an interview in Washinton, the Head of the mining organization Salcido Enterprises, Malachi Salcido explained it clearly: “We are entering in the phase when there’s a flushing out of the market. There will be relatively few operations that come out the other side.” Most people appear to have very bearing sentiments.
As in everything, there are also a few positive thinkers that believe Bitcoin will recover soon and the nightmare will come to and end in a matter of weeks, or maybe a couple of months. Of course, these are more the exception than the rule. One of these bullish exceptions is Mike Kayamori, the Head of Quoine, who has been talking about surpassing the 2017 ATH next year. He has bullish words for 2019, as seen from the Japanese market.
“Japanese regulators are starting to open up again. They are going to approve new exchanges. They are going to approve new listings. All these things will start from the new year. The global trend is to accommodate these high-frequency traders… There is going to be these dealer-brokers who will be offering crypto to their retail customers, and there [are] these OTC brokers who will be providing services to institutional investors.”
One thing has to be taken into account, though. Bitcoin is the leader and column of all Crypto markets. All Cryptocurrencies have their value associated to Bitcoin. This means, if anything affects Bitcoin, even the investors of the most Bitcoin-phobic asset, should pay attention.
The present situation makes us remember one more thing: directly or indirectly, the technological invention of mining that Satoshi Nakamoto created, is still a King. It is the consensus mechanism par excellence. And even for those coins that antagonize and hate mining, mining affects their immediate environment and ecosystems every single minute of their existence. The realm of mining is not even close to be over.
If mining becomes unprofitable in Bitcoin, the risk for more and more reduction in number of miners keeps being present. If more and more miners quit mining, Bitcoin networks shrinks. The shrinking, undoubtedly, represent less capacity and less power. This downtrend in the network physical dimensions, might translate directly into more debacle in the price of BTC and, indirectly, a parallel downtrend in the price of all altcoins.
So, does everything depend on the capricious feelings of investors?
Does the victory of Bitcoin and the altcoins depend on a potential miracle in price? Well, maybe not. Let’s remember Bitcoin comes from the original price of less that $1,00. Most intelligent investments are done under temporal loss. There seem to be many more faithful loyalist miners, than quitters. Here is another key to success. Strong entrepreneurs do not weak so easily. Many miners are mining now even at loss. They have faith in the future.
The key to success seems to be, like it has been said so many times in the past, in patience, in working hard, in experimentation, in new ideas for the future, and in building new technologies for the blockchain, instead of being in just throwing off the towel at the first serious threat. Thousand of Engineers of Bitcoin network, of Ethereum and of many other awesome platforms, are right now paying less attention to apparent temporal unprofitability and losses, and are concentration in creating new solutions on top of the Blockchain. These new solutions are capable of bringing new ATH as Blockchain and Crypto become part of everyday life for the average person.