Bloomberg New Energy Finance recently released a report that bitcoin mining is very profitable in China, even if the virtual currency prices fell by half, miners are also profitable.
Sophie Lu, Bloomberg New Energy Financial Analyst, said Chinese miners will be able to make money even though the price of bitcoin can remain above $ 6925, even at the highest price set by the Chinese government. Bitcoin prices last last in this range last year In mid-month, its current price is about $ 13,900.
The price of bitcoin has risen about 14 times in 2017 and the electricity needed to mine the virtual currency is also growing, with about three-quarters of bitcoin mines in China, mostly in low-cost provinces.
'In China, bitcoin mining is likely to be profitable, no matter what tariffs,' writes Sophie Lu.
Virtual currencies are facing more scrutiny of electricity, especially in China, where governments are concerned that mines intend to exploit China's low electricity prices. Digital currency trading requires an energy-intensive computer network, which currently uses the Digiconomist bitcoin energy consumption index Of the electricity is equivalent to that of 3.4 million U.S. households.
Due to the large amount of power consumption, some government departments and regulatory mines have been rumored since last year. Up to now, according to Lei Feng Network (Public Number: Lei Feng Network), the comparative official official position should not be supported No objection, and some mines are said to have fought elsewhere.
Power consumption increased significantly
Bloomberg New Energy Finance said that by the end of 2017, the power needed to mine bitcoin has increased to 20.5 terawatt-hours a year, which equates to BHP Billiton Ltd., the world's largest conventional mining company, More than half the amount (38 MWh) or one tenth of the annual electricity consumption in South Africa.
In China, bitcoin mines consumed 15.4 megawatt hours last year of electricity, but only a small fraction of the country's huge electricity demand. Although China has the world's largest bitcoin mines, it consumes only China's electricity annually 0.2% of the amount.
Lu said it's hard to predict how much power the bitcoin mining will consume in the future because it depends on the efficiency of the computer in solving math problems and how many more computers will be added in the process.Checking that Bitcoin transactions require complex calculations, They perform these complex calculations, and then get bitcoin rewards, which is 'mining' operating mechanism.
In China, although bitcoin mining can make a profit even at a maximum price of $ 0.13 per kilowatt-hour, many companies can use electricity over part of the country to cut electricity costs to $ 0.03 per kilowatt-hour, according to which the bit Just $ 3,869 for miners will be profitable.
Lu said that even if China succeeds in limiting bitcoin power use, miners can easily relocate to other regions, and it is estimated that the useful life of mining computers will not exceed two years, and that of other related equipment will be cheaper.
"China's impact on bitcoin global Bitcoin market may not be as big a deal as possible," Lu wrote.
