Tom Lee: Bitcoin Mining is almost completely destroyed

Tom Lee: Bitcoin Mining is almost completely destroyed

March 17, 2018

It was not profitable to drop Bitcoin.

Analyst agency Tom Lee Fundstrat came to the conclusion that "Bitcoin (BTC) mining is now almost completely destroyed … in the midst of the current downturn in the markets."

Mining Bitcoin – the end is near

Lee notes in the Fundstrat report that the current cost of extracting one Bitcoin is 8 038, and BTC is trading at 8 221, at the time of publication of the report on Coinmarketcap. Now, the price of Bitcoin is about 8490 dollars.

Fundstrat considered the cost of Bitcoin mining including the cost of equipment, overhead, such as cooling devices, the cost of electricity, presumably 6 cents per kilowatt.

At the same time, the head of quantitative data research department of Fundstrat, Sam Doctor, said that the cost of replacing equipment occupies more than half of the total cost of production.

However, the miners earn money on transactional fees, which, however, have recently fallen. According to the BitInfoCharts data referenced Сointelegraph, the average tariff for the transaction 15 March was about 0,21 US dollar, and 23 December last year – more than 34 dollars.

Charlie Heather, CEO of CryptoCompare, said that the miners now earn half of what was in December.

According to Sam Doctor, the miners are likely to stop mining altogether if the BTC price drops to about 3000 dollars or 4000 dollars.

Author: Evgenij Novožilov, Analyst Freedman Club Crypto News

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