Bitcoin Price Increases Are Boosting BTC Miners’ Profitability: New Token Insight Report
Bitcoin Price Surge Raises Profitability Of BTC Mining
A catchphrase in the cryptosphere within the last year has been “Crypto Winter”, the drop in the value of Bitcoin (BTC) from its huge hike in 2017(December), not only caused the drop in the prices of all other digital assets but it also dropped the value of the entire crypto market.
While Crypto analysts are uncertain about claims that the “Crypto Winter” has ended, the mining of crypto against popular beliefs, is still profitable to a lot.
A recent report on Crypto mining says that ASIC (application-specific integrated circuit) mining is still a profitable venture in spite of the currently trending bear market.
Crypto Mining More Profitable
Using the Chinese market as it's main study, the report took into consideration certain factors to conclude that mining is more profitable than buying BTC, these factors include :
- Types of equipment used
- Mining difficulties
- Price of equipment used
- Energy consumption
Alex Kruger, an economist, also supported this conclusion in a tweet about the breakeven cost of mining BTC. He stated that the breakeven cost of mining BTC is 3,550 USD.
Considering this value to be accurate, then the current value of Bitcoin (5,262 USD) means a 1,500 USD profit on every BTC mined.
Cloud Mining Services
Cloud mining services were specifically mentioned in the report, which claims to offer a 10% return, which they claim to be better than just buying BTC.
It was also mentioned in the report that there has been an increase in the amount of cloud crypto mining services, which makes the industry much more accessible by reducing the cost of starting crypto mining.
Mining Pools Shutdown
This report is contrary to many other similar reports in the past, which claimed that cryptocurrency mining pools, (especially in China) were shutting down and mining manufacturers like Bitmain, were experiencing difficulties in profit making on their crypto mining equipment. Some even claimed that Bitmain’s reserves were running out and they desperately needed to raise fresh funds.
With Bitmain’s recent launch of its Antminer S17, there seems to be light at the end of the tunnel for them.