Analysis: Both old and new Bitcoin mining machines are profitable. What impact will this have on the price of the currency?

According to NewsBTC on September 10, during the long bear market of cryptocurrency from 2018 to early 2019, Bitcoin miners faced serious losses, and many miners had to close their hard-earned mines. At the same time, many industry insiders also believed that this would harm the security of the cryptocurrency network.

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New data shows that the rise in Bitcoin prices in the first half of 2019 has made Bitcoin mining profitable, but this does not mean a bull run is imminent.

Bitcoin miners’ pockets are getting fatter

The price of Bitcoin saw a massive surge in the first half of 2019, rising from a low of nearly $3,000 to a high of $14,000.

Although the price of Bitcoin has fallen significantly from its highs this year, it is still well above $3,000, which is good news for Bitcoin miners.

Alex Kern, an analyst at Fundstrat Global Advisors, explained in a recent tweet that most popular mining machines, including some older models, are profitable, and the total cost of mining one Bitcoin is currently between about $7,300 and $8,500.

He explained:

According to @fundstrat's latest Bitcoin mining update, assuming an electricity cost of $0.06 per kilowatt-hour, the total cost of mining 1 Bitcoin with Bitmain's Antminer S9 is between $7,300 and $8,500. At the current price level, both new and old mining machines are profitable.

Mining has started to make money, will the price of coins also go up?

While profitable mining may contribute to the health of the Bitcoin network, it may not necessarily be a good thing for the price of Bitcoin, as miners may sell the cryptocurrency they mine in order to make a profit.

Fundstrat co-founder Thomas Lee spoke about the impact that miners’ profitability could have on the price of Bitcoin, explaining that miners are likely to sell the cryptocurrencies they mine to cover expenses, which means they put downward pressure on the price of Bitcoin. He said:

According to the latest mining report from our quantitative team. Based on an electricity cost of $0.06 per kWh, the cost of an Antminer S9 is $7,300 (now the price of the currency is $10,000). Miners are finally making good money, and apparently some older models are also making a profit. It is still believed that if miners make money, they will become sellers of Bitcoin to provide cash flow for their capital expenditures.

But whether or not miners sell large amounts of bitcoin to the market, it is crucial for miners to remain profitable in order to promote long-term growth in bitcoin prices.