Mining is one of the main known methods of obtaining cryptocurrencies, including Bitcoin (BTC). Which is one of the most profitable due to its high value in the market. However, although the profitability of Bitcoin mining seems to be quite high, it is possible that it will decrease during 2020 after the next Halving.
However, Halving is not the only factor that will affect the cost of mining and its profitability. Since Bitcoin was close to $ 10,000, it overcame this barrier and after a few days began to fall, due to the COVID-19 pandemic.
This large drop in its price clearly affects the profits of the miners. Since, the current cost to mine BTC is around $ 8,000 and Bitcoin is currently trading below $ 5,500.
What is the current price of Bitcoin mining?
The price of mining can vary due to many factors. However, this is currently close to 8,000 USD, although it changes depending on the country in which the miner is located.
Therefore, to calculate its final cost, several aspects must be taken into account, in order to obtain a net cost for Bitcoin mining. These might be:
- Electricity consumption.
- Among others.
Generally, these Bitcoin mining equipment has a cost that varies from 2,000 to 3,000 USD. Although surely for this 2020 more modern equipment will be developed that can mine with a higher rate of TH.
In addition, electricity and Internet costs must be added. Which make mining easily reach up to 6,500 and 8,000 USD.
How much could mining cost?
The cost of Bitcoin mining can exceed the current figure and even double it. Since, with halving, the difficulty of mining will be increased.
By this, it is meant that new equipment with a higher capacity should be used, so that benefits can be obtained that make Bitcoin mining profitable.
On the other hand, it should also be taken into account that Halving will decrease the reward obtained by miners by 50%. This means that those that produced 12.5 tokens will only generate 6.25 BTC.
Another aspect to take into account is the updating of equipment, expenses for electricity consumption, Internet or others. Which (according to experts) will cause the cost of mining to double its current value and reach a figure that is established near 15,000 USD.
However, in the most optimistic predictions of the moment, many analysts have indicated that Bitcoin will easily surpass the $ 15,000 price. Many even mention that it could reach $ 100,000 without complications.
Can it be mined after Halving?
Certainly mining will not stop until the 21 million BTC tokens have been produced. However, it is possible that many miners will retire with the arrival of Halving, due to the low cost that BTC has at the moment.
For this reason, it is not profitable to leave mining, as this will only decrease the price of Bitcoin.
Mining will be possible, however, its profitability will be different. It is possible that it will increase or decrease depending on market movements.
To finish, a compilation of the mentioned must be made, in order to know how profitable it will be and what the final cost of this activity will be.
Now, taking into account all the factors exposed, clearly the price of mining will increase to $ 15,000 or $ 20,000. However, it is expected that after said increase, the price of BTC tokens will also increase, causing as a secondary effect that mining will continue to be profitable.