Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: arvinabeabe on September 19, 2018, 12:28:28 PM
-
BTC mining difficulty will be lowered, should the amount of hashpower drop. The inverse, of course, is also true: it becomes harder for miners to find blocks when the difficulty rises, which means miners will earn less. On top of that, BTC rewards change about every four years, and thus mining revenue is at the mercy of mining difficulty and its volatility.
So it’s not too controversial to expect that as BTC’s price has plummeted, along with mining revenue, the hashrate would follow as well. Mr. Doctor is suggesting otherwise. In fact, in a little less than half of a year, miners seem eager to not pack up or slow. They seem to be accepting less profit.
Seconding Mr. Doctor, Fundstrat head Tom Lee tweeted, “Updated estimates of fully loaded breakeven cost (now $7300 vs $6000 previously) for #btc based on the quant model developed by our quant/data scientist @fundstratQuant #bitcoin @BITMAINtech.” Mr. Lee has long maintained BTC often trades north of two and a half times its mining cost. Mr. Lee terms the “breakeven cost” associated with mining as a support line, a solid bottom, for BTC.