<story><title>Bitcoin mining becomes unprofitable as BTC price falls to average cost of mining</title><url>https://finbold.com/bitcoin-mining-becomes-unprofitable-as-btc-price-falls-to-the-average-cost-of-mining/</url></story><parent_chain><item><author>RL_Quine</author><text>You don&amp;#x27;t have to do anything dodgy to get power at an unbelievably low cost, even in north america bulk rates are a couple of cents per kilowatt hour if you know where to look, and in some cases you can even be paid to use power due to politics. You can also be mining at a loss and have it be completely rational, because it is less of a loss than turning it off and writing off the equipment. The economics are very non intuitive for people who aren&amp;#x27;t exposed to the industry.</text></item><item><author>MengerSponge</author><text>If they&amp;#x27;re either using subsidized or pirated electricity, and their hardware is paid for, why would miners pull out?</text></item><item><author>thematrixturtle</author><text>It&amp;#x27;s a self-correcting equilibrium though, since the block difficulty is tied to the hashrate, which will fall as miners pull out.&lt;p&gt;That said, the hashrate is not showing major drops yet:&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.blockchain.com&amp;#x2F;charts&amp;#x2F;hash-rate&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.blockchain.com&amp;#x2F;charts&amp;#x2F;hash-rate&lt;/a&gt;</text></item></parent_chain><comment><author>praptak</author><text>A dude I know has cheap electricity on his allotment garden where he built a wooden hut&amp;#x2F;cabin. He uses three PCs built from throwaway parts to heat the hut in the autumn and early spring (in winter there&amp;#x27;s nothing to do there).&lt;p&gt;On the PCs he runs an app that basically manages the mining for you, automatically switching between cryptos to get the most microcents per watt per second.&lt;p&gt;I have no idea why the allotment gardens got the cheap deal on electricity and I don&amp;#x27;t know if the mining gives him a significant &amp;quot;discount&amp;quot; on the heating.</text></comment>
<story><title>Bitcoin mining becomes unprofitable as BTC price falls to average cost of mining</title><url>https://finbold.com/bitcoin-mining-becomes-unprofitable-as-btc-price-falls-to-the-average-cost-of-mining/</url></story><parent_chain><item><author>RL_Quine</author><text>You don&amp;#x27;t have to do anything dodgy to get power at an unbelievably low cost, even in north america bulk rates are a couple of cents per kilowatt hour if you know where to look, and in some cases you can even be paid to use power due to politics. You can also be mining at a loss and have it be completely rational, because it is less of a loss than turning it off and writing off the equipment. The economics are very non intuitive for people who aren&amp;#x27;t exposed to the industry.</text></item><item><author>MengerSponge</author><text>If they&amp;#x27;re either using subsidized or pirated electricity, and their hardware is paid for, why would miners pull out?</text></item><item><author>thematrixturtle</author><text>It&amp;#x27;s a self-correcting equilibrium though, since the block difficulty is tied to the hashrate, which will fall as miners pull out.&lt;p&gt;That said, the hashrate is not showing major drops yet:&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.blockchain.com&amp;#x2F;charts&amp;#x2F;hash-rate&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.blockchain.com&amp;#x2F;charts&amp;#x2F;hash-rate&lt;/a&gt;</text></item></parent_chain><comment><author>ahtihn</author><text>&amp;gt; You can also be mining at a loss and have it be completely rational, because it is less of a loss than turning it off and writing off the equipment.&lt;p&gt;It depends what you mean by mining at a loss.&lt;p&gt;It&amp;#x27;s never rational to mine when the cost of power is higher than the expected return. Turn off your equipment and go buy bitcoin directly.</text></comment>