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Current mining cost of Bitcoin: $34,000

18 Jan, 2022
Текущая себестоимост

The profitability of Bitcoin mining is directly dependent on total mobilised capacity, mining difficulty and the price of the coin itself. On 15 January, the network's hashrate hit a new all-time high of 231.2 EH/s.

Image source: coinwarz.com

An uptick in online capacity led to a rise in the expected increase in mining difficulty. While an increase of 0.7% was predicted early last week, difficulty is now expected to rise by 6.1%. In this case, mining difficulty could also hit a new all-time high within four days. 

Image source: btc.com

Difficulty increases both as a result of an increase in the number of active miners and due to improvements in ASICs. In November 2021, Bitmain unveiled its new Antiminer S19 XP — a machine that boasts 140 terahash capacity while still only using 3 kWh of electricity. This represents an energy efficiency gain of 37% and a profitability increase of 25% over the S19 Pro, thanks to its 5 nm chipset. According to analytics agency Luxor, by the end of 2022, the S19 XP will account for a quarter of the global hashrate.

Currently, the biggest order received by Bitmain for its new model was made by Marathon Digital, which plans to become the world's biggest publicly traded mining company over the next year. During this time, the total number of ASICs online should rise to 199,000, with a total computing power of up to 23 EH/s.

The current mining cost of Bitcoin is estimated at $34,000, while mining profitability stands at 25.6%. Any future increase in difficulty will lead to a reduction in mining profitability. Once it falls to zero or below, we typically see a rally in Bitcoin.

Image source: twitter.com/venturefounder

The lower the mining reward is, the more coins miners accumulate as they wait for the next wave of price growth. Their reserves currently exceed 1.9 million BTC or 10% of the total coins issued. What's more, not just miners return to accumulation; hodlers do, too. 

Image source: StormGain cryptocurrency exchange

All things remaining equal, the upcoming increase in difficulty will cause Bitcoin's price to rise in the long term as the accumulation of coins will lead to lower supply in the market.

StormGain analytics group

(cryptocurrency trading, exchange and storage platform)

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