The latest data shows both narrowing profit margins and miners waiting longer to recoup their initial investment.have largely held off on major distribution as BTC/USD descends from all-time highs, the picture now appears precarious.
Calculations from on-chain analytics platform CryptoQuant reveal that miners’ production price — how much it costs to mine a single bitcoin — could be right where current spot price resides. While “raw” costs may be around $22,000 per BTC for miners in North America, which is home to the lion’s share of hashing power, additional costs could put the total at more like $30,000.
“We estimate cost basis for bitcoin miners in North America around $22K per bitcoin mined. This estimate includes the direct cost of mining and S&A expenses. It does not include depreciation and amortization charges,” CryptoQuant senior analyst Julio Moreno confirmed to Cointelegraph in private comments.
“If depreciation and amortization charges are included then the cost basis for mining bitcoin is at around $30K, basically at the same level as current bitcoin price.”Fears of a “capitulation” event among miners should spot price deteriorate remain a
No doubt, if they are not going to change how Bitcoin is getting mine then there will be a point of impasse that could make the price collapse.