Bitcoin Bottom Price Related to Mining Electric Bills
Bitcoin has a theoretical bottom price that is very likely related to the electricity cost of mining.
The cost to mine Bitcoin is different due to geographic location, energy generation mix and the amount of electric subsidies provided by government. Once the price of Bitcoin falls below the cost of production the amount of new Bitcoin on the open market will drop—causing increased scarcity and an increase in price–thus creating a bottom or price floor for Bitcoin and the other mineable altcoins.
It is unlikely that Cryptocurrency miners will stop mining unless the dip in price continues over an extended period of time as most are in the cryptocurrency mining business for the long term. In addition most cryptocurrency miners have previously committed to significant overhead investments as well as specialized hardware the latter of which only becomes less valuable over time. Using previous price history as a guide it is well known that market price swings are fairly common and of relatively short duration so Cryptocurrency Miners typically just have wait through market dips until they become profitable again before selling their mined coins.
Cryptocurrency Mining Hodlers and Sellers List
Note the following list only considers the approximate price of electric overhead costs in USD and does NOT include the cost of such things as: mining equipment, rack storage and mining support staff…all of which shifts every country higher towards the Miner Hodler Category.
Bitcoin Miners Currently Likely to be Hodlers by region (with a $6000 USD electric cost):
South Korea: 26000
Niue: 17500
Bahrain: 16500
Solomon Island: 16000
Cook Islands: 16000
Germany: 14200
Denmark: 14000
Belgium: 13500
Portugal: 11000
Spain: 11000
American Samoa: 10500
Australia: 9900
Netherlands: 9500
Greece: 9100
Chile: 9000
Cyprus: 8700
Nicaragua: 8600
United Kingdom: 8400
Cambodia: 8300
Liechtenstein: 8100
France: 8000
Norway: 7800
Mexico: 7600
New Zealand: 7600
Slovenia: 7600
Switerland: 7500
Finland: 7100
Pakistan: 7100
Philippines 7100
Poland: 7000
Brazil: 6500
Malta: 6100
Singapore: 6000
South Africa: 6000
* * * Using a Bitcoin Price of 6000 USD as an Example * * *
Location of Cryptocurrency Miners the could still be Producing & Selling:
Estonia: 5500
Fiji: 5500
Nigeria 5300
Lithuania 5100
Thailand: 5000
Turkey: 5000
Brunei: 4800
Iceland: 4800
Sweden: 4800
Ukraine: 4800
United States: 4800
Russia: 4700
Argentina: 4500
Peru: 4100
Canada (Ontario): 4000
Taiwan: 3800
Saudi Arabia: 3200
China: 3100
Egypt: 3100
Serbia: 3100
Bangladesh: 2300
Belarus: 2200
Recent Bitcoin Price Action:
When looking at recent historical price charts Bitcoin might currently have a theoretical bottom price of $5800 USD, due to related electric and fixed costs per region–as well as the number of Bitcoin miners currently forced to HODL waiting for prices to bounce.
Green-Eco-EV News Reporting by Ken Green Burridge
Kenneth Burridge test-drives electric Nissan LEAF in Melbourne Australia
Independent green journalist, EV of the Year Judge, photographer, author and sustainability activist that has published over 1000 articles. Mr Burridge’s travels have taken him to over 40 countries and 300+ major cities. He is originally from the USA, but has been residing in Australia for the last seven years. Connect to Ken Burridge on: Twitter, steemit, facebook, Google+, Linked in or website
