[2018-03-16] Fundstrat’s Tom Lee Reports Bitcoin Mining Now Less Profitable Due

Slow death

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Quote from: churrosndips on March 17, 2018, 12:15:41 AM

Less profitable is not the same as not profitable.

if the miners did not stop mining it means that the situation is not serious, it seems that every day we have to read bad news and pessimistic comments. Wow, this is a very difficult year.

Quote

A recent report by Fundstrat’s

Just one question:

why the hell the press was not interviewing the miners to know the point of the situation and see if this report is correct?

churrosndips

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Less profitable is not the same as not profitable so I'm sure that miners will still keep on mining for the remaining bitcoins in the system. Bitcoin has proven to be resilient over the past few years so the current dip is probably temporary as prices are projected to bounce back above $11k. I don't see how Tom Lee's statement helps right now unless he's doing what he can to ensure that the current dip will continue and they can buy low. The current dip in bitcoin's value is projected to go in the low 5k but it's not showing any signs of hurrying towards that direction.

If I'm a miner, I would not worry too much on bitcoin's day to day fluctuations as year on year, it's value has been going up. I'd worry more on what direction I'd take my resources to by the time that the blockchain runs out of coins. I don't believe that collecting transaction fees would be that profitable unless the volume of transactions through bitcoin matches those being done through the major credit card companies. I should hype up bitcoin more to ensure that it becomes a default currency for everyday transactions.

bbc.reporter

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Then add power companies raising their rates for miners and the government adding more expenses by taxing them more, then we might be seeing a concerted attack. Bitcoin is a threat to the banker's business model, so they would either have to change it or kill the competition.

I reckon they see that killing the competition is the cheaper option.

bitcoin_bob

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A recent report by Fundstrat’s Tom Lee notes that Bitcoin (BTC) mining earnings are currently almost breaking even, as the activity has temporarily become less profitable the midst of the current decline in the markets, CNBC reported yesterday, March 15.

Lee notes in the report that the current figure for the cost of mining one bitcoin is $8,038, while BTC is trading at around $8,221 by press time, down a quarter of a percent over a 24 hour period, according to data from CoinMarketCap.

The model Fundstrat used for calculating the cost of mining one BTC includes the cost of equipment, overhead such as sustaining cooling apparatuses, and the cost of electricity, assumed to be 6 cents per kilowatt. The head of quantitative data science at Fundstrat, Sam Doctor, said that the cost of replacing equipment takes up more than half of the overall cost of mining.

https://cointelegraph.com/news/fundstrats-tom-lee-reports-bitcoin-mining-now-less-profitable-due-to-falling-btc-prices

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