Report: 80% bitcoin mining with renewable energy but the miners did at a loss

Source: Babbitt

According to CoinShares released a new bitcoin mining report shows that, at current prices, bitcoin mining may make the most of the miners lose money.

Ordinary miners operating at a loss”

In a highly praised by people cryptocurrencies “white paper” in all aspects of CoinShares bitcoin mining is studied. In recent weeks, with bitcoin prices fell to $3500 $4184.78 from the lows, for mining more discussion.

“According to our results, since May, according to 5 cents /KWh and 18 month depreciation schedules, according to the market average, mining total marginal cost from about $6500 to about $6800,” this shows that the price in the current case, ordinary miners are operating at a loss. Mining in electricity costs close to 3 cents /KWh, mining equipment depreciation period of more than 24-30 months or pay the cost of mining equipment than we estimated to be less when mining revenue cannot cover capital expenditures.

80% bitcoin mining rely on renewable energy

Due to falling prices, mining companies seem to have encountered considerable economic difficulties, and no matter where the price is how much.

Last week, social media appeared on the alleged China miners sold a lot of unprofitable mills photos, allegedly now the dry season, pushing up the cost of water, which makes the miners feel a headache.

In addition, it is worth noting that, since the 2011 year 12 month 2 day, bitcoin difficulty will decline for the first time.

CoinShares said that the future will continue to focus on mining the most cheap energy, mainly renewable energy.

The researchers concluded that:

“History data about the Chinese energy structure and crypto currency mining business based on geographic location, our research results have shown that, contrary to the usual argument, the vast majority of global bitcoin mining activities (minimum 77.6%) are based on renewable energy.”

“Bitcoin standard” (the Bitcoin Standard) author Saifedean Ammous said he agreed with these findings, and added that he would publish the bitcoin mining on Friday (Economics) first in-depth analysis”.

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