Estimating Break Even Mining Costs to Predict Where Corrections Will Bottom

​ https://i.redd.it/3a05djc1vwu11.jpg For many Bitcoininvestors a key benchmark of how low the Bitcoin market price can go is the cost of production during the mining process. This cost depends on both extrinsic factors such as geography, as well as intrinsic factors relating to choice of mining hardware and as such it is difficult, if not impossible, to find a single figure to cover all mining operations worldwide. However, by making a few assumptions and taking a purely statistical approach, we can arrive at figure which may serve as a general rule of thumb for the lowest order. The Process As of writing global hashing rate is approximately 35 million Terahashes/s (TH/s). For this process I assume an idealistic mining unit with properties identical to an Antminer S9, which is currently the leading commercial/retail mining unit in terms of popularity. The manufacturer’s website offers the following relevant information: Price: USD 780 Power: 1.3 kW Hashing rate: 13,500 GH/s Efficiency: 93 % at 25 °C This being the case we can estimate that it would take 2.8 million of these idealistic S9-like mining units to... READ MORE... submitted by /u/fraer8558 [link] [comments]

source https://www.reddit.com/r/btc/comments/9s2ha2/estimating_break_even_mining_costs_to_predict/