It Takes 9343$ to mine one bitcoin, so no way i am selling it below 12000$ - page 3.

figmentofmyass

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Quote from: hugeblack on September 25, 2018, 02:50:36 AM

If we deal with such a logic, it means that the price will be correlated with the increasing difficulty of mining, which means that the rate will increase continuously.

it is correlated. the thing is, a lot of people believe that price follows difficulty---that's totally absurd. nobody gives a shit about mining costs, they only care about the price. difficulty follows price, not the other way around.

in a very bearish scenario, it will just take a while (probably years) for that reality to set in. the relationship between price and difficulty is very inefficient. for now, miners and mining chip producers are obviously still bullish and have the capital to back their operations. they're betting on the long term.

larkinvain

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Though I don't have much idea about bitcoin mining but if your information is true then Bitcoin miners are mining bitcoin in lose? Bitcoin is under 9K USD from April, then these times miners haven't gotten any profit?

kostia21

full member

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Buy, sell and store real cryptocurrencies

Quote from: dohh on September 25, 2018, 07:13:08 AM

Quote from: bitfocus on September 25, 2018, 07:11:31 AM

may be your mining operation is costly, but some people are getting cheaper power and their mining cost is lower than yours, so, you may be unable to sale, but current price is still profitable for some - so, trade and sale will continue.

You fail to understand the power of exponential numbers. ROI of mining BTC is diminishning exponentially.

and the fact that he is now down it's just temporary and he soon attains its former peak price))) so now just have to wait the best time)))

kostia21

full member

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Buy, sell and store real cryptocurrencies

so, the cryptocurrency gradually begins to enter our lives, and the current price of bitcoin I think is temporary, and over time it will be much higher))

drm

legendary

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Quote from: Pursuer on September 25, 2018, 05:18:17 AM

with all things said and done, it will not matter at all what the real cost of mining bitcoin is. it may be $1 or it may be $100K.

Something with nail and head Wink

Supply and demand is what will be making the price.

ganlianshifu1

member

Activity: 392

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The cost of mining BTC is always changing!
In fact, the miners are not simply concerned about the current price of Bitcoin.
As long as the miners believe that Bitcoin will still be able to go up in the future, then they will not care about the current losses, but will continue to dig down and sell them after the currency.

dohh

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Quote from: bitfocus on September 25, 2018, 07:11:31 AM

may be your mining operation is costly, but some people are getting cheaper power and their mining cost is lower than yours, so, you may be unable to sale, but current price is still profitable for some - so, trade and sale will continue.

You fail to understand the power of exponential numbers. ROI of mining BTC is diminishning exponentially.

bitfocus

member

Activity: 532

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may be your mining operation is costly, but some people are getting cheaper power and their mining cost is lower than yours, so, you may be unable to sale, but current price is still profitable for some - so, trade and sale will continue.

dohh

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Activity: 332

Merit: 1

Quote from: 1Referee on September 25, 2018, 06:27:13 AM

Quote from: Kakmakr on September 25, 2018, 02:16:10 AM

I am taking a wild guess here, by saying that a more realistic global average would be more like $2000 per coin. Huh

I think that's pretty much on the lower side, but I have no doubt about larger miners to have way lower generation cost ratios than current price levels.

If you take into consideration that larger miners have much higher block generation frequencies, the cost per minted Bitcoin decreases significantly, even if your electricity rates aren't the cheapest in the industry. In that regard, you can counter electricity rates by having yourself account for a large part of the network, but in Bitcoin's case, it will cost you dozens of millions in gear to obtain that sort of advantage over the rest.

Quote from: Kakmakr on September 25, 2018, 02:16:10 AM

So, it is still very profitable for a lot of people to continue mining in a lot of countries. Tongue

I'm not sure if that's actually the case. Current levels are really pushing home miners to their limits, and it may even have resulted in people to swallow current unprofitability in the hope that the coins they generate increase in value in the next couple of months. What if the price remains below $7000 for the rest of the year? People's patience doesn't last endlessly unless they are hardcore Bitcoin enthusiasts.

Problem is well described by Referee.

What would follow in this scenario: miners would have choice, quit mining or group up into farms. After each halving pressure on mining ROI doubles over night! That means only the most effective few farms could operate profitably. But that again... would not be very decentralized, right?

1Referee

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Quote from: Kakmakr on September 25, 2018, 02:16:10 AM

I am taking a wild guess here, by saying that a more realistic global average would be more like $2000 per coin. Huh

I think that's pretty much on the lower side, but I have no doubt about larger miners to have way lower generation cost ratios than current price levels.

If you take into consideration that larger miners have much higher block generation frequencies, the cost per minted Bitcoin decreases significantly, even if your electricity rates aren't the cheapest in the industry. In that regard, you can counter electricity rates by having yourself account for a large part of the network, but in Bitcoin's case, it will cost you dozens of millions in gear to obtain that sort of advantage over the rest.

Quote from: Kakmakr on September 25, 2018, 02:16:10 AM

So, it is still very profitable for a lot of people to continue mining in a lot of countries. Tongue

I'm not sure if that's actually the case. Current levels are really pushing home miners to their limits, and it may even have resulted in people to swallow current unprofitability in the hope that the coins they generate increase in value in the next couple of months. What if the price remains below $7000 for the rest of the year? People's patience doesn't last endlessly unless they are hardcore Bitcoin enthusiasts.

dohh

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Merit: 1

Quote from: betty11 on September 25, 2018, 05:13:42 AM

Power cost is damn the main bottle neck to profitable mining. This is why some projects are coming on blockchain to see how they could harness a cheap green energy for the purpose of Crypto mining. Some companies are even owing customers due to high power cost of mining, currently they have put their mining onhold till btc prices rises enough to pay electricity. Although, this is not the case in all nations of the world as some locations have access to cheap electricity.

Well, You can also look at the other side of coin. Maybe "halving" is the bottle neck? Think, if the last halving would not had happened, mining would be at the moment 2 times more profitable. If there were not 2 halvenings, it would be 4 times more profitable, then 8 and so on...

Or You could also think: mining would be as profitable at price level 2 times lower, than now, 4 times lower etc.

Halving: pyramidal scheme. Period.

Red-Apple

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Quote from: Ranly123 on September 25, 2018, 05:34:21 AM

Quote from: bitcoinfuck on September 25, 2018, 01:22:46 AM

Quote from: gotminer on September 24, 2018, 08:48:29 PM

There are huge mining farms in the USA that have half that electricity cost. I personally have a cost of slightly less than 0.10/kwh. Bitmain certainly doesn't have a cost that high. You're averaging USA electrical costs and coming up with a number that btc should be valued at? We are not the only country in the world that is mining crypto.

All of that aside ... I would never sell my btc at 12k. The majority of the btc that I hold will not be sold under 50k. It can either reach those levels or I'll watch it go to zero while I continue to hold. I don't care if it takes 3-5-7-10 years to get to the point at which I would sell, I will wait or I will watch it go to zero.

Yea sell them at 50k, but how eill you oay mining cost Huh

?

I pay nothing for mining, my electric costs are negotiable at very bulk. Anyways the point was to notify all panic sellers that atleast don't sell btc below the mining costs it takes to make the coin

Of course, only dumb people sell below their mining cost. But if they have other source of income then selling anytime does not matter as long as the payment for power consumption does not come from the mine bitcoins. That is for what I thought it is I guess.

when deciding whether to sell or not, mining cost should be the last thing you consider because miners are NOT the ones who decide what bitcoin price should be. if the market decides it should go down then it will go down and if it decides they want to buy at certain price like $5900 then no matter what you do, no matter what the cost,... they will buy at that price.

rumexx

full member

Activity: 476

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There is no business if you do business and make loses. So if it actually cost $9343 to mine 1 BTC why will somebody sell of at a low price that is prevalent in the market today. The best to do as you pointed out is to hold and wait for the market to reverse and watch it yield the needed profits. The FUD mongers are the major problem we are having in the crypto marketing space as they create the panic by spreading FUD which will caught up with the crypto newbie and make them to panic sell and lose their coins.

Ranly123

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Quote from: bitcoinfuck on September 25, 2018, 01:22:46 AM

Quote from: gotminer on September 24, 2018, 08:48:29 PM

There are huge mining farms in the USA that have half that electricity cost. I personally have a cost of slightly less than 0.10/kwh. Bitmain certainly doesn't have a cost that high. You're averaging USA electrical costs and coming up with a number that btc should be valued at? We are not the only country in the world that is mining crypto.

All of that aside ... I would never sell my btc at 12k. The majority of the btc that I hold will not be sold under 50k. It can either reach those levels or I'll watch it go to zero while I continue to hold. I don't care if it takes 3-5-7-10 years to get to the point at which I would sell, I will wait or I will watch it go to zero.

Yea sell them at 50k, but how eill you oay mining cost Huh

?

I pay nothing for mining, my electric costs are negotiable at very bulk. Anyways the point was to notify all panic sellers that atleast don't sell btc below the mining costs it takes to make the coin

Of course, only dumb people sell below their mining cost. But if they have other source of income then selling anytime does not matter as long as the payment for power consumption does not come from the mine bitcoins. That is for what I thought it is I guess.

bstash

copper member

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Bitcoin Stash | https://bstash.org

Mining Bitcoins at home is no longer profitable. Try to mine obscure alt coins instead. Tongue

Pursuer

legendary

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Where is my ring of blades...

with all things said and done, it will not matter at all what the real cost of mining bitcoin is. it may be $1 or it may be $100K.
when you are speculating about price you should see what the market thinks. sometimes when speculators start believing in something they eventually also end up acting on it. for example people think because of halving the supply reduces (the world "half" maybe!) so the price should go up! but the reality is that halving has nothing to do with reduction of supply, the supply is continuing to grow. the price rise has always been the product of increasing demand and limit that max supply has. everything else is short term and hype-based.
mining cost has been the same. many speculate cost is about $6k which is one of the many reasons $6k has been a strong buy support.

betty11

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Activity: 448

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Power cost is damn the main bottle neck to profitable mining. This is why some projects are coming on blockchain to see how they could harness a cheap green energy for the purpose of Crypto mining. Some companies are even owing customers due to high power cost of mining, currently they have put their mining onhold till btc prices rises enough to pay electricity. Although, this is not the case in all nations of the world as some locations have access to cheap electricity.

r32godzilla

hero member

Activity: 1361

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First of all we should know that the mining cost for one bitcoin varies in different countries.For example,mining cost for one bitcoin is just 1,983 dollars in Kuwait and 2,177 dollars in Belarus.But the cost varies as 13,482 dollars in Belgium and 14,751 dollars in Marshall islands.So it depends upon the geographical location of where we mine.

dablatair

member

Activity: 324

Merit: 15

Hello,

I don't think it is the good way to think. Cost of mining is really depending of the differents factors taking in count. Electricity costs are not the same in all countries and region. Even in the same country you have different cost of electricity depending of supplier, contract, quantity...

Also the price of BTC is not related to the price of produced it but the actual price that people are ok to spend for it.

Even if it is a great technology with other attracts than price, atually the price is driven by the markets and buyers/sellers.

cryptoJJJ

newbie

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The prices of mining Bitcoins depend of your equipment. The price of Bitcoins also depends on your cost to run your business like electric, housing space and spare part and work labor and then how much you need to pay in tax out of your profit.

If we just looks at the electric price then South Korea comes in as the most expensive country for mining a single coin at $26,170 and Venezuela came in as the cheapest nation at $531. According to this https://www.elitefixtures.com/blog/post/2683/bitcoin-mining-costs-by-country/

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