Is it profitable to mine bitcoins? Morgan Stanley says the break even at $ 8,600

The bitcoin is again close to $9,000 per unit. Which probably means a respite for many of the big ‘producers’ who live from mining bitcoins using powerful computers that consume large amounts of electricity. According to economists at Morgan Stanley, most of these big miners lose money if the price of bitcoin falls below $ 8,600.

In a note published in last week, experts from the US bank stressed that “the margin level for the largest mining pools is $ 8,600, assuming that the cost of electricity was only three cents. the kw / hour “.

The margin point of balance in the accounts of a company. That is, when a company goes into margin level it means that it has reached the breakdown point. At that moment, the revenues equal the costs (fixed and variable) and the future arrival of benefits begins to be glimpsed.

It is very complicated to get a bitcoin with a normal computer and acting individually. So the so-called mining pools are used. There are mining groups (many people and computers), which joining forces make bitcoin mining more efficient. Even so it is important to have a great technological team to achieve results, the better and the more graphic cards are used, the greater the options of finding a bitcoin.

The process of bitcoin mining is intensive from the energy point of view. The miners plug thousands of servers at the same time to have the necessary capacity to produce cryptocurrencies by solving mathematical equations.

The bitcoin miners will consume about 130 terawatts / hour of electricity this year. Equivalent to the consumption of Argentina or the one expected for the electric car world park by the middle of the next decade, according to Morgan Stanley.

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Economists of this bank believe that although bitcoin remains relatively above $ 8,600 during the second half of this year. Finally mining may not be profitable. The mathematical problems that have to be solved to undermine a new bitcoin are increasingly complex. Need more energy as the offer of bitcoin approaches its peak.

Bitcoin price falls sweep the market to less efficient producers, as has happened on other occasions. In the end, this clean usually leads to a reduction of the bitcoins that are mined per day.

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