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Ran Neuner Discusses The Cryptocurrency Bear Market

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How Low Can Crypto Go? The Question Everyone is Asking

Ran Neuner, the host of CNBC‘s show Crypto Trader, says $6250 is our next level and if we breakdown from there, we could be looking at $5900 afterwards.

Mining cryptocurrency has it’s costs, and depending on what part of the world you are in, you could already be mining at a loss. Below is a list of crypto mining costs all around the world based on electricity in USD. There are also other costs, such as maintenance staff, location costs and replacing mining hardware to keep up with difficulty. This replacement is generally every year to 18 months. This data is from May 2018.

cost of mining a bitcoin in each country

 

Approaching or Already at Break even For Most Major Miners

You can see the price to mine a bitcoin in the United States is at $4,758, before other expenses. We are nearing, or at the actual costs for mining farms in the U.S. Many other nations aren’t much cheaper, even the coveted mining country of Iceland is now at $4746. China is the only country with some leeway at $3,172. Once you factor in other costs, the profits are still slim, even for large scale Chinese farms.

Generally, once miners are unable to mine at a profit, they shut down or mine at a loss. They can only do that for so long. Some opt to shut down until the price comes up, or the difficulty flattens or drops from hashrate reduction.

That’s when Bitcoin starts to bottom out and find a floor, it has a history of larger cup and handle formations. The boom and bust cycle is no stranger to this emerging market.

This is a great chart that shows a logarithmic chart with Bitcoin halvings, it shows where we could consider ourselves in the cycle.

bitcoin lagarithmic chart with halvings

crypto quotes

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