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"Bitcoin currently trades essentially at the break-even cost of mining a bitcoin

Home General Investing "Bitcoin currently trades essentially at the break-even cost of mining a bitcoin

  • jfoxcpacfp jfoxcpacfp 
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    Status: Financial Advisor, Accountant, Small Business Owner
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    Joined: 01/09/2016

    This thread remind me of the problems with recycling, especially now that China has virtually stopped imports.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #234248 Reply
    Avatar docnews 
    Participant
    Status: Physician
    Posts: 410
    Joined: 01/09/2016

    It’s a market. If you believe Bitcoin will rise in the future you could operate at a loss. But generally those operating at a loss stop but that makes the remaining more profitable. It’s a supply and demand and it’s not that bad if it is near balanced for the network.

    #234253 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2490
    Joined: 08/01/2016

    There can only be 21 million bit coins that is possible. Of which 17 million have already been mined. For the 4 million left to be mined we are using enormous amounts of power to extract it. From 50 bit coins per block mined it is now only 6.25 bitcoins per block from 2020 and it is halving every 4 years. As blocks get harder and electricity costs rise and the amount of bitcoins given per block start to fall further and further, there will come a point when mining operations will cease.

    Originally, 50 bitcoins were earned as a reward for mining a block. Then it dropped 25 bitcoins, and then to 12.5 bitcoins. In 2020, it’ll drop to 6.25 bitcoins. So if we do the math, if there is a halving event every four years, the last Bitcoin should be mined sometime in the year 2140

    #234386 Reply

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