Bitcoin Mining Finally Profitable for Miners in 2019?
The recent bitcoin rally has driven bitcoin mining profits on continual growth. Profits earned from bitcoin mining have seen obvious rise since the start of this April and hit a near-half-a-year high on April 15.
According to crypto analyst Alex Kruger, the breakeven cost for efficient bitcoin mining operations currently hovers around $3,550-$4,350 while the price of bitcoin is in the $5,000+ range. That ensures a $1,000+ profit for each bitcoin mined, and a substantial profit for bitcoin miners considering the uptick momentum in bitcoin price continues (at the time of this writing, a bitcoin is trading at $5,564).
The bitcoin mining operational breakeven for efficient mining operations currently stands around $3550. pic.twitter.com/gQrNYBcvLH
— Alex Krüger (@krugermacro) April 21, 2019
Kruger said the breakeven was calculated based on the electricity rate of 5.5 cents kWh. While as electricity cost varies in different regions, the breakeven cost could vary in line with that.
“Exact number is heavily dependent on electricity cost. e.g. last December Coingeek reported an electricity cost (inclusive of all operational expenses) of $0.073. I am using $0.055.” Kruger added.
Given the electricity rate in China is much lower – 3.5 cents kWh as some mining farms claimed – when the wet season in Sichuan started, miners in China can make more than $2,000 in profit for each bitcoin mined. Over the second half of 2018, however, the breakeven cost dropped below the BTC price, leading to inefficient Bitcoin mining and losses, some even shut down their mining operation and sell off their miners.
Together with the rise of mining profitability, the hashrate of the whole bitcoin network has also been climbing all the way. That means, more miners have been coming back or freshly entering bitcoin mining. As btc.com shows, bitcoin hash power has seen a 25% increase from 36.55 Eh/s in mid-December 2018, to 45.76 Eh/s in mid-April.
The ASIC miner market has also been waking up rolling out faster new-gen mining devices. Late March, Canaan rolled out Avalonminer 10 which delivers a hashrate of 31TH/s at 1736W; Days later, Bitmain revealed its Antminer 17 series delivering a hashrate ranging from 50 TH/s – 56 TH/s operating at 42W/T-45W/T; and MicroBT released a whopping 72TH/s bitcoin ASIC M20S recently.
These figures are suggesting that the market is showing signs of life after coming off the worst months. Bitcoin mining is finally profitable for miners and getting its prospects back after the year-long sluggish.