- Beforehand the production cost for mining was around 34000 dollars.
- The BTC mining business is much bigger than the current price level, and the new information shows that a mass mining sell-off is very unlikely right now.
- It has been noted in the Twitter account @venturefounder that even at the cost of 14000 dollars, that trading cost is almost 20% above the cost price of the miners.
Beforehand the production cost for mining was around 34000 dollars. But now, with the added transaction fees – you can get the support of another 40000 dollars on BTC/USD. The Bitcoin mining business is much bigger than the current price level, and the new information shows that a mass mining sell-off is very unlikely right now. It has been noted in the Twitter account @venturefounder that even at the cost of 14000 dollars, that trading cost is almost 20% above the cost price of the miners.
The worst Bitcoin price dip caused because of miner capitalization
Even after having a full sweep of $27000, Bitcoin is quite a great opportunity for the miners. The hash rate is reaching the culminating point this week, which will estimate the total processing power needed because of the mining. Most of the concerned individuals are saying that the low price of Bitcoin will put pressure on the miners so that they would sell their assets. But now, the new assurance is coming that there can be a bitcoin trade so that the entire scenario can break even.
There is a difference between the production cost indicator coming from the CEO of asset manager capriole, Charles Edwards- he revealed that the point of balance is currently at 34000 dollars. The dump due to Bitcoin happened because of minor capsulation, which occurred in December 2018 and March 2020. During those times, Bitcoin went below the cost of production and was at risk of capitulation from the miners. As a result, BTC was at a major risk of capitalization in mah when it was 30000 dollars. The current production cost is around 34000 dollars which is about 20% below the recent price.
Also Read : 2021 was a time of mass adoption of cryptocurrencies- Brazil
There is no reason for sell-off as seen by the miners, and the future perspective is quite hopeful. The indicator from 2019 states that apart from the spot price incursion below the production cost, the caption fees will give them additional support so that there is no anticipation in the mining process. The electrical cost required to produce a bitcoin has a price floor in the entire market price of Bitcoin.
According to Cointelegraph, most miners are working with the help of their wallets because of Bitcoin consolidation below 50000 dollars.
The majority of the miners are also accumulating Bitcoin rather than selling this month- and it is quite different from last year when miners wanted to sell off their assets. This is marketing a healthy balance sheet and resolving all issues for the future. The best part is that there is hardly any economic difficulties insight which is Good news for all the crypto investors. In the worst-case scenario, the Bitcoin price floor is estimated to touch 30000 dollars and not lower.
Most of the cryptocurrency experts report that the Bitcoin cycle is going to enhance and is far from over. Fidelity digital assets have around 4.2 trillion dollars assets under management and are saying that Bitcoin adoption will become the mainstream economic attribute. Recovery of the hash rate was very quick and surprising, particularly when China banned Bitcoin in 2021 only. Most of these miners go by their Instinct to predict the value of Bitcoin. Right now, the miners are making great investments for the long haul.
The hash power of BTC will be distributed evenly across the world, and the miners are not going to be off their work anytime soon.
