Bitcoin Miners might STOP mining

In a not so surprising move, Bitcoin miners may be turning off their machines at least until the Bitcoin price rebound. It's no secret the Bitcoin has been not going up which has dampened investor sentiment but now it's also interfering with plans of ambitious mining projects that have flooded the market since bitcoins peak at year-end.

According to Fundstrat's sam Doctor and Ken Xuan:

Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team.

There was an article a couple of weeks ago, they were showing exactly how expensive it is to mine bitcoin in each country and how much it costs to actually create one Bitcoin.

I think the cheapest was Venezuela and maybe some other South American country where they have tons of solar energy and I think it comes out to $20,000 to make one Bitcoin. So when bitcoin was around $20,000 these people were making a lot of money. But for the other where there isn't cheap electricity, they are pretty much breaking even at this point and this may lead a lot of gigantic companies to kind of turn off their machines for a while at least the price goes back up because when they turn off their machines less coins to be made, there's a scarcity then prices likely to be growing back up.

So this is kind of what I think they are leaning towards doing should the price dip below 8,000 and stay there for like a couple of weeks, I think they would definitely turn it off because they just end up losing money in the long term.

When you have something that is making you three to four billion dollars a year, you hold on to that thing. They are making tons of money and this is just them. Fortune points out that mining pool is tied to Bitmain and BTC.com control more than 40% of bitcoin mining. They are never going to let bitcoin die no matter what anyone thinks maybe when the last bitcoin has been mined this is when they'll let it go but until then I think it has a bright and continual future for what it's worth.

But yeah the price has gotten so low now that a lot of people are coming forward saying that we may stop mining for some time and I wonder exactly what that would do to the price. I wonder what would happen if all the miners stopped the mining completely but then I would stop all the transactions on the network, so I guess yeah scratch that.

Bitcoin Miners might STOP mining

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