Cryptocurrency miners need to be efficient or face going out of business. That’s because anything else will wipe out operators while the price of Bitcoin down at between $6,000 and $7,000.
Only miners with access to very cheap electricity of around 6 cents per KWh or lower can remain profitable, warns Sophie Lu, analyst at Bloomberg New Energy Finance. And if Bitcoin stays at this level for more than a couple of weeks, those with high operating costs will be forced to quit the market, she reckons.
The Bitcoin industry’s daily revenue was a mere $16m on Tuesday down from a record high $53m in mid-December according to the Blockchain.info website. The cost per transaction was $79, compared to $72 in December.
Some cryptocurrency miners are looking to set up shop in Canada where the big draw is the country’s cheap energy.
Image: Steve Mullins