In 2017, the Crypto currency grew very much in price, only one bitcoin reached a record 20 $ yew. This situation was beneficial not only for investors, but for miners who actively extract this coin around the world. However, in 2018 the situation changed dramatically, the regulation of the South Korea’s crypto-currency market, the ban on Internet advertising by the giants Facebook and Google, all this exerted strong pressure on the market and led to a drop in the rate.
Mining requires certain investments and costs, not only for equipment, but and for electricity, so the low cost of coins can be unprofitable for harvesters. So, with the bitcoin rate of $ 8040, with a power consumption of 0.06 Kwh / h, and using an average cooling system and equipment, the mining is break-even.
Much depends on electricity prices in different countries. So in China and China, the cost of electricity is almost 3 times cheaper than in other countries, so the main bitcoin farms are located right here. Then come Venezuela, Sweden and Denmark, the cost of electricity here also makes it possible to profitably mine a bitokin even with significant price drops. For all other countries, the drop in the bitoclin rate by 60%, makes the coin extraction unprofitable.
The new fall of the rate, which we saw last week, again raised the question of the fate of the crypto industry in unprofitable mining. The latest crypto currency news today published a comment by Thomas Lee, the head of the Fundstrat department, regarding this issue:
“We must understand that the gradual reduction of the award for the opening of the block, in any case, will lead to small-scale mining becoming unprofitable, even with strong growth of the country’s currency. If we talk about the fate of mining with a strong fall in price, then, for example, China can profitably produce bitcoin, even if the price falls by two or even three times. ”
In the future, when the extraction of coins becomes more complicated, and The reward for the block will be reduced, many of the miners will stop earning coins. This will lead to the fact that only large mining pools will remain in the arena, for which the extraction will still remain profitable. After the last block is generated, the pools will continue their work, supporting the implementation of transactions on the network.
There is one more important point that can affect all cryptomir. The fall in the rate and the complexity of production, can lead to the fact that the processing of blocks will take a long time, and the price of transactions will greatly increase. This makes the use of bitcoin uncomfortable as a payment tool, and that is the main idea of Satoshi Nakamoto.
At the current price, it’s impossible to confidently say one hundred will be with the mining when the price of coins falls dramatically, which most likely will not happen. Perhaps some of the miners will leave this field of activity or switch their farms to the production of more profitable coins.
You may also be interested in how to start mining the Crypto-currency.