Even though the price of Bitcoin has been falling, the rate of mining has reached a record high with BTC hashing power estimated to be above 43 million TH/s, which is 3x the rate at the beginning of the year.
For miners, the drop in price seems to be of benefit as the estimated time to breakeven becomes much shorter by the day. For others, this is a good time to mine (especially for those who have access to cheap electricity) as much coin as possible and reap its benefits when price eventually hits speculated future prices just as it was when the whole ‘cryptocurrency’ thing started.
Quoting Philippe M. Heilberg who is the former head of Global Emerging Markets at AIG’s commodity division saying in a tweet that,
“At a 0% growth for hashrate and price for the next 18 months (yes its a ridiculous assumption), #Bitcoin breakeven is $6400 and #Litecoin is $130. #Crypto is cheap. Synthetic mining probably best option!”
And yet another twitter user, @HaveMercyBaby, given a price range lesser than that of Philippe said,
“Breakeven mining costs are around $5700-5800 at 8 cents kwh…”
What’s more, it seems mined coins are being stored rather than spent as transactions on the Bitcoin network holds at an average of 200k in a 24hrs period. This is way lower, about 5x than transactions daily on the Ethereum Network.
BTC Mining Debunks Myths
It has always been the believed that as more coins are mined there’ll be more transactions which will lead to a continuous rise in price over time. But the current situation of the market has shown this is not the case.
Possible Network Change For BTC
There are also speculations that there could be a change from Bitcoin’s current Proof-of-Work system to Proof-of-Stake. This was hinted via a tweet by @CobraBitcoin, which is the official handle for the owners of bitcoin.org & bitcointalk.org platform,
“It’s FUD to claim that miners won’t support a PoW change, or will *always* be bankrupted by it. In theory, it’s possible to have a subset of miners signal for support of a PoW change and reward these miners in some way on the new chain. It’s not necessarily a disaster for them.”
Whether this will be achieved or not, there needs to be a consensus reached by the Bitcoin community and most especially the miners. Implementing the PoW surely doesn’t render miners useless completely, but at least, upcoming miners can get a fair share of the pie.