Experts from Fundstrat found that the cost of mining one bitcoin is approximately equal to its value on the stock exchange.
In published yesterday the report of the research center said that “at the moment the bitcoin price is approximately equal to the amount sufficient to break even when mining”. The actual figures for the United States; thus, it is estimated Elite Fixtures mining one bitcoin in South Korea will cost 26 USD 170.
Methodology for the analysis of Fundstrat includes several factors. First, is the cost of the computers themselves: since math problems over time, become more complex, miners have to constantly upgrade your equipment. Secondly, it is electricity consumption. Errors in the computations are expensive because they use huge amounts of energy. Finally, the cost of cooling in the process equipment produces a lot of heat.
The costs were not an obstacle, when the rate of bitcoin has shown steady growth, but since last year BTC chart volatility demonstrates the opposite. At the time of this writing, bitcoin was sold for the price of 8485 USD. According to Fundstrat, the break-even point of mining a single token is 8038 dollars.
As pointed out by CNBC, the miners suffer losses not only due to the high competition and devaluation of bitcoins, but because of the falling transaction fees — another element of their profits. In December 2017 the average fee was $ 34. Now charges fell below 50 cents.
However, the situation may change with the increase of the active application of developments in the blockchain Bitcoin leading financial institutions. According to the report, Bitcoin Patent Report, some of the largest global banks have become the leaders in the number of declared patents with the use of this blockchain.