Bitcoin Mining Economics
⠀⠀
⠀⠀⠀⠀⠀⠀
This information is not meant to be price speculation, but more to explain the #economics of Bitcoin. 🥇
⠀⠀⠀⠀⠀⠀⠀⠀⠀
The cost to mine ⛏ a Bitcoin 🥇 in #China 🇨🇳 is currently about $3,150.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Why is this important? ❓
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Because China 🇨🇳 makes up about 60% of the total Bitcoin Mining ⛏ Power (aka Hash Rate) in the world 🌎.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
This means that if the price of Bitcoin 🥇 goes below $3,150 then the largest Bitcoin miners in the world will no longer be profitable. 📉
⠀⠀⠀⠀⠀⠀⠀⠀⠀
At this point they would have two options.
They could turn off their mining ⛏ operation completely and wait for it to be profitable again.
They could continue to mine, but not sell the Bitcoin 🥇until they could sell it for profit (above $3,150).
⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
If the second scenario plays out then this means that at $3,150 a lot of the selling pressure is relieved from the market.🚱
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Let’s think... 💭
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Every 10 minutes, 12.5 new #Bitcoins are mined ⛏. In order for a mining business to run, it must sell its bitcoins 🥇to cover its cost of doing business (mainly #electricity). ⚡️
⠀⠀⠀⠀⠀⠀⠀⠀⠀
You might expect a large portion of this constant selling pressure to be relieved at $3,150, creating a potential floor 🌄 price there.
⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀
Hi and welcome here! When I started on steemit, my biggest problem was to find interesting people to interact with. So, to help newcomers getting started I created a directory with other interesting and or talented steemians to follow or interact with. Feel free to check it out at https://www.steemiandir.com I am sure it will help you find like-minded people. Enjoy your stay here and do not hesitate to contact me if you have any questions!
Thank you!
Hello @hunter5!
I noticed you have posted many times since you began your journey on Steemit. That is great! We love active partipants.
I do want to point out that the Introduceyourself tag is meant to be used once only to introduce yourself to the Steemit community. You have now posted 5 times using the introduceyourself tag. Please see this link for more information on Tag Spam?
Please take this into consideration and help build a great platform!
Welcome to Steem hunter5! Partiko is officially the fastest and most popular mobile app for Steem. Unlike other Steem apps, we take 0% cut of your earnings! You can also be rewarded with Partiko Points while using Partiko and exchange Partiko Points for upvotes!
Partiko for Android can be downloaded here on Google Play and the iOS version is available here on the App Store.
If you have more questions, feel free to join our Discord channel and ask @crypto.talk, we're always here to help!
Thank you so much for your interest!