Only one number matters: how much money is needed in 2019 to support the current price due to mining. Bitcoin: $2.6B Ethereum: $660M (assuming fork in January) Bitcoin Cash: $152M That's a lot of money.
It took a while, but now miners are running at close to zero operating profit, regardless of the coin. Ethereum mining power peaked at the beginning of August -> it started violently dumping as miners started selling everything Bitcoin mining power peaked at the beginning of November -> it started violently dumping
thats assuming they dump as soon as they mine it. No serious miner is dumping at near zero profit, they hold for long term, which makes even more sense when diff is low
Luke Nguyen
Hashpower very likely never needs to be a concern. Mining farms dominate most of the hashpower but if any of them decide to close shop due to unprofitability, this means competition goes down for smaller mining operations to take over. The economic theory of incentives is very well thought through for PoW. These networks will be secure as long as they are adopted by users.
That reasoning only made sense when people were mining using their home electricity and were able to pay the bills using their salaries. Those days are long gone.
Brandon Kelly
Crypto isn’t dead, it’s merely evolving
Julian Roberts
big mining operations have made so much profit they can afford to mine at a loss for at least 5 years
Colton Hernandez
>they can afford to mine at a loss for at least 5 years why would they do that, they are running a business, not a charity operation. Only home miners are dumb enough to mine at a loss.
The fact that hash power is dropping very fast shows that miners are in fact shutting down unprofitable operations.
Why should you mine for a loss with a higher cost per coin than it's current market value?
Justin Bennett
Yea this guy is right.
Brayden Watson
for these people (running big mining ops) to be mining at a loss price has to go down big time, which means diff goes down too, which means more corns for the same electricity spent. The power bill $ remains a constant, difficulty lowers. In short term it means less or even negative profit, but on long term (assuming price rises again) its a win. Its about the long game. It is the equivalent of buying low, when you buy low you are at a loss in fiat until you sell higher for fiat. These people have so much hardware they dont buy the crypto, they mine it, and the lower the price and diff goes the more they can accumulate for the next run. Mind you not everyone can afford to do this, just those with cheap electricity and tons & tons of hardware
