Bitcoin’s revival above $11,000 has brought it into the attention of people again after 2017. Moreover, the characteristics are profoundly different this time with rising institutional interest and global awareness about it.
The price of Bitcoin has recovered by about 57% of its value from its all-time high. Therefore, even if someone invested $100 giving into FOMO at its absolute zenith, the loss incurred at current prices is about $43. The rise in price and increasing belief around the asset is also having a positive effect on the growth of the network.
Bitcoin mining total hash rate reached it’s All-Time High above 60,000,000 Th/s to record a new high near 65,000,000 TH/s. Hash rate is the measure of active mining nodes and mining power applied to run the mining nodes, which confirm the transactions on the network. The miners earn a reward in Bitcoins [BTC] after successful block formation.
Furthermore, the hash rate of the Bitcoin network during the last bull run of 2017 was around 10,000,000 Th/s, 6-times lower than the current statistic. Hence, even during the bear market, there was significant network growth.
According to a recent report on Bitcoin mining, the average marginal cost of operating a bitcoin mining farm around the world is about $6800-$5600. Moreover, the only time a rise decline was seen was during the December 2018 lows. When Bitcoin’s price dropped below the operational running cost of miners. Hence, some of the small and medium scale miners had to shut down their systems to stop incurring losses.
Bitcoin is trading more than $5000 higher than the break-even cost of mining. This will surely increase the number of active nodes throughout the world as people begin to take advantage of the opportunity.
Bitcoin mining is a highly profitable business currently, with a single unit of Bitmain’s S9 miner generating about $20 worth profit above operational cost. Moreover, Q2 of 2019 seems to have instilled long-term viability for the miners as well.
Geographically, more than 60% of Bitcoin mining is concentrated in China. While this comes as an alarming due to the centralized control in China, the global increase in hash rate and lenient crypto regulations will further enhance the network.
Do you think that Governments around the world will allow Bitcoin mining? Please share your views with us.
About Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes and reach out to him at nivesh[at]coingape.com