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The profitability for Bitcoin production largely depends on power pricing. Here's one country-average based breakdown (from Feb 2018) - you can look at the $600
by lhl 8y ago
The profitability for Bitcoin production largely depends on power pricing. Here's one country-average based breakdown (from Feb 2018) - you can look at the $6000 down level to see where it's still profitable: https://cointelegraph.com/news/mining-margins-and-where-to-make-the-most-money https://cointelegraph.com/news/mining-margins-and-where-to-m...
You can also use a mining calculator to do a real time spot-check of whether Bitcoin is profitable to mine or not as well (even if you have pretty average electricity prices, very much so): http://whattomine.com/asic?utf8=%E2%9C%93&sha256f=true http://whattomine.com/asic?utf8=%E2%9C%93&sha256f=true
For those interested in the most accurate and in-depth analysis on the economics, power consumption, and other aspects of Bitcoin mining, I can highly recommend @mrb's writeups like http://blog.zorinaq.com/bitcoin-electricity-consumption/ http://blog.zorinaq.com/bitcoin-electricity-consumption/ and http://blog.zorinaq.com/morgan-stanley-bitcoin-research-reports/ http://blog.zorinaq.com/morgan-stanley-bitcoin-research-repo...
Note that the original article/title is pretty flawed to begin with since there are no tokens that depend on Bitcoin mining to begin with! (90% of tokens by market-cap are based on Ethereum, mining which is even more profitable than Bitcoin, and the economics of which will be changing drastically w/ Casper V2 soon).
- tmikaeld 8y agoWow, thanks for the information! With that in mind, it seems that it will be a looong time until the bitcoin craze is over.
- lhl 8y agoWell, it'll probably be a long time before the "bitcoin craze" is over since cryptocurrencies as a technology and an asset class are still in their infancy, but it's hard to say how long proof-of-work mining will last. Personally, I'm most closely following what the Ethereum guys are doing with proof-of-work (see: https://ethresear.ch/ https://ethresear.ch/) but I'm also quite keen to see Chia's proof-of-space-time (an iteration of proof-of-capacity) or if something like proof-of-useful-work is possible. I think everyone's in agreement that PoW is expensive and wasteful, it's just a matter of developing//proving something that works better/cheaper...
- tekproxy 8y agoBitcoin pow is intentionally useless. The reasoning is that if there were alternative uses, the value of those alternatives could fluctuate and negatively impact hash rate.