Saturday January 27, 2018
Total BTC mined: 0.47219396
Total BTC mined USD: $5411.50 (based on today’s current exchange rate)
Total Spent: $1891.50
Remaining to break even: $0.00
There is a growing issue that I feel almost no one is talking about and that is the potential for negative spread Bitcoin mining within the coming months. By negative spread I’m referring to the cost of mining outweighing the reward and things aren’t looking good over the next few months.
Right now the current difficulty rate is 2.6T which is roughly 33% higher than it was 30 days ago and while the price of Bitcoin is down roughly 20% in that same period. While Bitcoin prices have leveled off and are now trading in a fairly consistent range, mining difficulty is expected to grow another 17% by 2/8 and according to various rumors (can’t call them sources really) Bitmain is expected to put a large batch of BTC miners online by end of March that will further accelerate hashpower and thus difficulty.
If you were to mine BTC in South Korea, you’d be paying about $26k per coin whereas Venezuela you’d be paying around $3k because of subsidies. Of course I don’t live in either country but if you considers those costs jumping another 30-40% over the coming months, one has to wonder when power will be switched to Bitcoin Cash or turned off altogether.
According to Digiconomist, Bitcoin electricity use is now on par with the entire country of Iraq and as you can see in the graph above, it’s expanding rather steadily. That led me to think, is there some other basic infrastructure that could be used as the backbone for mining but unfortunately digital systems need power so there really isn’t another solution.
Even if Bitcoin was 100% mined with renewable resources, that’s still energy taken off the grid that could be displacing much more environmentally destructive power generation sources.
Today’s image comes to us from X1klima