Bitcoin Forum

Morgan Stanley say bitcoin mining only profitable above 8600 dollars. I'm not sure this is correct though, especially if future valuations come anywhere close to fruition.

This is not exactly. It depend on the price of electricity and some policy of government in country where you're living.
According to Elite Fixtures, the cost to mine a Bitcoin in Venezuela is cheapest $531 and Republic of Korea is the most expensive $26,170. United States is $4,718. Many Asia countries and some East European countries have the cost to mine a Bitcoin is cheap as: India, China, Uzbekistan... they just need $1,100 - $3,500 to mine a Bitcoin.

This is not quite true, as the cost of bitcoin decreases, the complexity of mining also decreases, as the number of miners becomes smaller. Therefore, it will still be worthwhile to mine.

The most important expenditure for mining is mine and electricity!

Electricity is different around the world, and a BTC can be dug in China for less than $2,000.

The cost of mining in venezuela is lower!

There are several factors that influence the profitability of mining.Profit depends on the complexity, the number of miners,depends on the Commission for the transaction.Revenues may depend on the course. But this does not mean that if the rate falls, mining becomes unprofitable. He continues to work for the prospect of course growth.It is also necessary to take into account the cost of electricity.The combination of these factors affects the profitability of mining and they need to be considered.

No exactly true. Depends on the price of electricity and other factors which are dependent on where you are in the world.

Ask him if he do mine bitcoin. I don't mine bitcoin but I know it's still profitable if you have large farm to held your mining operation. Nowadays it's easy to say something base on your view without applying or experiencing on how it really works.
Also the temperature must be considered like genesis' one location in Iceland.

I don't think it is true and yes why should we take Morgan Stanley statement very much serious if he is unknown from the real stats of mining and other valuations of the respected living country of the miner. It totally depends on the country's economic conditions, their amount and quality of resources like Electricity and hardware requirements, and one thing matter a lot is whether the country is supporting the Mining business or not. I think it can be managed well if countries joined together and take some necessary plans and steps by which they can decrease the cost of Mining to a certain extent. In my country India, the cost of mining is somewhere around $3000-$4000.

The production cost of BTC is different from all over the world!

The biggest impact on BTC production costs is electricity, which is cheap to extract from cheap electricity.

There are also some artificial expenditure is BTC's mining cost!

The more developed a place, the BTC mining cost is very high!

The cost of btc mining vary as I know I don't know the lowest possible cost but probably btc will rise in the long run considering mining costs. What is going to happen when btc price is never able to be over the cost?

The cost of mining is tremendously high when you take account of the electricity bill that comes after buying that high end machine .
Also the amount of Bitcoins mined is generally distributed amongst a set of people and whatever everyone gets is not very very high thus I think that it's pretty legit fair and..the small miners would get affected more if it falls below this but the good news is that we are seeing this constant growth spur that's minute but steady and we can expect a lot in upcoming days .

BTC value> 8k6 $ is effective for mining is not quite right. Because the mining process from the company depends on the construction, tools, equipment and utilities as well as the amount and power consumed depending on where to operate it.

It depends entirely on a) electricity costs and b) the hashrate.

Even with low electricity costs, you can end up spending a fortune trying to mine because the hashrate is high and the rewards thus low. That's why so many miners mine bitcoincash and other coins to supplement their earnings.

Well it can be considering the cost behind that thing but I think long term mining is really profitable no matter what the price. When you do mining you can tell if its really profitable or not, but since I have experience on this thing I’ll leave some thought from the professional miners here.

Bitcoin mining profitability only based on the electricity cost,if his country has the high electricity bill then he may can only have profits above the price what he mention but in some countries the cost is very cheaper so they can make profits even the price is lower.But that is not the stable price of bitcoin soon it may go to moon so keep mining the bitcoins and hold them.

This is not correct.
You must calculate your Mining profitability by considering how much are you paying for the hardware, electricity, cooling, your time and many more factors. But by all meanings, it's cheaper than $8600 to mine a Bitcoin. At least in my country.

This is not true for every individual as the mining expenses vary from place to place. It mainly depends on the cost of electricity you are using.

im not into mining but i dont believe that it was depending on bitcoin price..i guess its about the electricity bills if its cheaper well you may gain good..but if youre region has a high electricity price then thats why low earning from mining happens

This depends on how much are your running costs like rent for the place and electricity charges. In come places, it can be profitable even with BTC prices of $5000.

That depends on more factors than anyone thinks cause mining is not only based on price of bitcoin but costs that you need to pay by doing that including for example your time so for me this is an individual case.

It depends on where the miner lives in. I know countries like India, Pakistan, Nepal still has electricity price very cheap. So it should be okay for Bitcoin miner from these countries if the price is below $8600. I guess some African and Asian countries have similar facilities for crypto miners.

I read this and my first reaction was that this was an arbitrary number they must have picked out of the air because like a few others have mentioned there are so many variables that go into the overall cost of mining. The electricity cost for one. Say you are using a renewable energy source, then what? And the degree of difficulty is always changing as well so how is this factored in?

This is a fake that is distributed by miners in order to justify the high cost of the transaction. I don't believe that. The bitcoin price has been below $ 7000 for a long period this year. Do you think that in this period miners worked at a loss? Lol. It never happens. Perhaps they are preparing public opinion before the rise in price of bitcoin and as a consequence of the increase in prices for confirmation of transactions.

Honestly, I am not a pro Bitcoin miner. But I see in my local community, there are many people that already sold their mining rig and Antminer.
I don't know what is the reason, I guess it's probably due to the market crash last weeks.

The problem with every miner is that electricity bills are increasing every year now is also somewhat expensive in my country for electricity bills, with bitcoin price reductions tending to affect it, with bills and everyday needs that are so much a second problem, not worth the income with every expenditure day must have a problem in the mining tool or the other, every miner must have their respective problems.

"Apparently" is definitely the operative word.  Since when are we taking Morgan Stanley's word for anything?  Other than perhaps how to get away with a slap on the wrist for serious financial crimes?  Calculating mining profitability clearly isn't one of their strong suits.  They should stick to what they're good at, which is flouting regulations, exploiting the ignorant and giving generous political contributions to both halves of America's two party system to gain favourable treatment. 

I suppose on the plus side, it's reassuring to know they're still far from understanding anything at all about crypto.  Means we still have the upper hand.

Yet another generalized statement. It's either Morgan Stanley doesn't know how to do math or he doesn't know that mining operation costs vary greatly from country to country. If mining bitcoin is only profitable @ $8600, how come we haven't lost any substantial hashing power when the price is @ $6000? Miners would have left if they are losing that big and yet they don't. It's great that these annoying 'experts' don't know how the scene really works.

Apparently everybody here knows that the cost of mining directly depends on the cost of electricity. And the electricity tariffs differ variably across all the countries of the world. So there is no such set standard for the costs and profits of mining to remain same over a particular benchmark. The rates vary significantly and you cannot even find two countries where the rates of electricity are same, and the cost of mining would be same. So this makes the whole difference and as far as profitability in mining is concerned that highly depends on the time and other resources that you devote to this work.

Yes mining is something that you will have to look at everything you will have to loot at the market and you will have to buy the equipment and you will have to manage your time for it same way you will have to pay the electricity bills in mining, so if you have enough amount of capital for all this then you can earn with bitcoin mining, if you see the real face of mining then it is full of profit ad it made a lot of people rich within few months, so buy now to mine but keep the above things in mind.

This is something that came out in a news story the other day, but it doesn't put into consideration all of the variables which are present. Some of them include the price of the electricity, the price you bought the machinery you mine with at, taxes in your area, etc etc. This study is probably focusing on one area in the world, rather then focused on areas like China who get power for pennies on the dollar. So, yeah, disregard that completely.

This topic has come up a few times. Here's the closest thing to a definitive answer I've seen:

https://i.imgur.com/hMZpOZp.jpg

Image link: https://i.imgur.com/hMZpOZp.jpg

Source: https://www.elitefixtures.com/blog/post/2683/bitcoin-mining-costs-by-country/

Unsurprisingly, financial and economics spokespersons aren't the most reliable nor accurate source of information.

The cost of mining is also expected to decrease as the ASIC market becomes more decentralized with intel, samsung, nvidia and others due to enter the market. The cost per watt of hashpower is also expected to decline further as competition incentivizes advancement and industry wide innovation in ASIC production with smaller nanometer scale lithographic silicon etching processes which will be empowered by Moore's Law, et al.

This is not correct as far as I know about mining. It depends on the cost of electricity and that of a nice strong system. How much do you spend on hardware? What is the compensation foe the time you spend mining. A one time investment in these inputs and then planning for long term mining will help earn irrespective of the price of electricity and other factors.

I don’t think so. If mining was only profitable at the $8600, then why were people rushing into right from the time when the price was still at the rate of $100 and less? You don’t just say that it is only profitable when it’s at the rate of $8600, rather it is more profitable when it’s at the rate of $8,600 and above, but profitable at all rate. When the price of Bitcoin was at low rate, people who were just investing on cloud mining made a lot of profits, but ever since the price became high, people don’t make anything from cloud mining anymore. So what he’s saying makes no sense.

There is nothing to have a strong connection with the price, it only matters on electricity charges in different areas.  Apparently, they got more profit if the price of btc is more higher than of their bills.
Maybe stanley is just referring on their country and not considering with the others.

in my opinion, mining is only profitable if you have this following: fast internet, high end computer set-up, specially your GPU, which is the miner, and has an access to a lot of capital to start mining. for me, this indicates that only those who are in capable of doing so can benefit from this and take note that you could only earn big through it if you have mined enough because if not then you are at risk of having more debt.

If bitcoin mining became more and more complicated ant expensive I would just do another things instead of that, but if it is a passive income and you can afford that, to make it profitable, go ahead.

My friends mining bitcoin and he still have profits if bitcoin price at $8600 but its small profits. Electricity cost very dominant in mining and he should buying some power back up because electricity in our country not stable too. Its expensive at start but when bitcoin price above $10k, its very proftable he said

No, you can even mine with a 3g connection.


Again, you don't need that at all.


Nobody is mining bitcoin with a GPU


Wow, you only earn if you mine enough, nobody thought of that, Captain Obvious.


There is a strong connection altought it's one direction only.
Mining can't affect the price, but if the price goes down a lot it can make miners shut down their equipment as the electricity bill is bigger than the income.

as I would like to think, mining is just productive in the event that you have this following: quick web, top of the line PC set-up, uncommonly your GPU, which is the digger, and has an entrance to a considerable measure of funding to begin mining. for me, this demonstrates just the individuals who are in equipped for doing as such can profit by this and observe that you could just procure huge through it in the event that you have sufficiently mined on the grounds that if not then you are in danger of having more obligation.

I beg to disagree as I believe not.
Mining bitcoins will always be profitable no matter the value of it as you can simply hold them ofd and wait for the price to peak then finally sell them. Bitcoin has a great potential in the future and it is in its nature that it will prosper in some time.

He’s not right. All these thingsthat has to do with making of profit and not making of profit are based on the expenses you make while working as a Bitcoin miner. When your loss are bigger than the profit you’re making, then Bitcoin mining is not meant for you. Expenses you make depends on where you’re living, the cost of electricity and other stuffs. But I still believe that Bitcoin mining gives more profit when the price is very low. But whatever… I’m not a miner anyway.

it is true for countries with high electricity prices, in europe or USA, but in countries with low electricity costs it is still profitalbe to mine bitcoin at 6000 usd price.

If you have a free electricity and a low cost expenses mining is alaways good then.
but mining is very expensive and if you are just starting i will not advice it to you now.
good to go with others, just search more and you will find it.

No where in the world we can get electricity for free,if you got means then you are stealing it.But the prices vary from country to countries so if your country has cheap electricity and cooling climate condition then you can make good profits from mining.And bitcoin mining needs one time huge investment because it needs lot of hashpower to mine bitcoins.

Yes you're right. Given the initial investment required to set up a mining farm, the cost can only be justified if the price of bitcoin is above 8500$. Anything below it is just not profitable and not investing so much money into. These Miners had made the maximum profits when the price was around 20k$. Those were their golden days.

I think that the cost can be attributed only to electricity consumption. Tariffs for electricity in different countries fluctuate, so to say exactly what amount is the threshold of profit is not possible.

Not really, actually mining would be profitable if done in mass I mean if done with so much hardware like china did yesterday. But if you done it individually could only profitable if you keep it and do not need to sell it all , just sell for the daily / monthly mining cost. There will come a price of more than $ 8k, just think about investment after that.

This is not entirely true. It depends on the cost of the Bitcoins and its rise and fall.

Its not correct. I mean its juts about the time and hash rate calculation which defines the ultimate fate of everything. If you have bigger hash rate then your ROI time will be less no matter what are the prices. If you have less hash rate then obviously it will take huge time to recover the cost of set up.
Im not sure how Morgan got that calculation but for me that is how it works. I might be wrong but hey come on its working just fine for me. After holding if the price grow huge then obviously that would rise in my profit itself.

This is not entirely true. It depends on the cost of the Bitcoins and its rise and fall.

Reading about the history of Bitcoin, what I really dislike is the fact that there are mining companies. It's not like it was meant, with each user contributing. I wish I could go back to the days when people use to mine it with their laptops.