Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
The cost of mining Bitcoin reduced to its lowest in ten months. This is because people involved in the mining operation are now making use of better equipment to do the mining. This has reduced the difficulty of mining Bitcoin to about 6.7%.
During last week’s Wednesday strategist disclosed that the production cost for Bitcoin has reduced to approximately thirteen thousand dollars, from the previous twenty-four thousand during early June. The present cost of mining Bitcoin is the lowest since last year September, going by analysts’ statements.
With the low cost of Bitcoin production, pressure on miners to sell will be eased, hence profitability will be improved. Nevertheless, strategists remain pessimistic, as they opined that reduction in mining cost may be seen as detrimental to Bitcoin value outlook.
More Information on This Topic
They (analysts) continued by saying that the cost of production is seen by some analysts as a downward pull on Bitcoin in a bearish market. Furthermore, many analysts have forecasted that Bitcoin’s value will decline to thirteen thousand dollars. This however correlates with the over 80% drawdown in the past two bearish markets. Currently, Bitcoin is been bought and sold at around 70% from last year’s November all-time highest price.
The cost of producing Bitcoin reached its highest in April this year and last year’s November. Nevertheless, the cost has reduced, and so did the value. The reduction in production cost has been related eventual reduction in the consumption of electricity.
Additional Information From the University of Cambridge
A considerable number of Bitcoin miners have shut down obsolete and ineffective mining plants. This is because these plants are not profitable, mainly because of higher energy prices, plus a crash in Bitcoin value.
Finally, we can assume that the reduction in Bitcoin mining cost could stop continuous reduction in how profitable the mining operation is. Also, this can increase mining profitability in months to come.
Teach yourself technical analysis: Technical Analysis
