Bitcoin Forum

Electricity is the number one cost for cryptocurrency mining, giving an edge to whoever can secure it for the lowest price. Bitfarms, which has access to cheap renewable energy in Canada, reports that mining a single BTC cost the company just $1567 in the first half of the year. See more for yourself here (https://news.bitcoin.com/bitfarms-reports-mining-a-single-btc-cost-it-just-1567-in-h1-2018/).

Take a look at this old chart : https://bitcoinist.com/wp-content/uploads/2018/03/Bitcoin-Mining-Electric-Costs-By-Country.jpg <might be a bit outdated, but still a good comparison to see where electricity cost alone is the cheapest>

I am glad to see that Bitfarms Technologies is planning to build their “mega-facility” close to a clean power source. <Hydro electricity>

Their current 91 PH/s of hash power is very impressive already. <Photos & videos?>

I do hate when big companies get more advantages than ordinary people in addition to the possibility of acquiring the latest asics technologies. Low energy prices should go to citizens not to companies that already collected tremendous amount of money...
Anyway, i still think that coins that implemented an asic resistance technology should be privileged and also POS.

Very interesting data you have posted. It is becoming more and more interesting for me to go to what is worth mining and mining crypto-coins. It once again spurs me to the correct direction of investment of the money.

I've recently read another article stating that mining is only profitable when Bitcoin is trading above $6500 (not 100% sure about this number)
I wish I could find the article in question, but it was a couple of weeks ago I think.

I've found similar articles, but all from longer ago stating different profitability thresholds.

https://www.cnbc.com/2018/04/19/bitcoin-miners-are-losing-money-at-any-price-below-8600-morgan-stanley.html

I'm not a socialist when it comes to Bitcoin - yes, it's new alternative money and there is an arguable "push" to redistribute this new wealth but at the same time, if we started trying to control who can own what, then the point is lost. It's a money end game if these big guys are all fighting to gain dominance, but I see it as beneficial anyway if they're just adding hashpower and securing the network even more.

In the end, consumers themselves are feeding these guys. Buying up their machines so they can build better, cheaper ones. Getting on their "cloud mining" so they can expand even more and feed scraps to their investors.

Okay, I'm not a mining expert, but assuming this article is true, then why the hell of genenis mining said this:

Genesis Mining Compels Certain Customers to Upgrade BTC Mining Contracts (https://cointelegraph.com/news/genesis-mining-compels-certain-customers-to-upgrade-btc-mining-contracts)


and hashflare did the same thing:

HashFlare’s Exit and the Future of Cloud Mining
 (https://cointelegraph.com/news/hashflare-s-exit-and-the-future-of-cloud-mining)

in this OP article I read this:


It seems to me that it is time for genesis mining and hashflare to show their profits and losses in order to better understand their mining operations

I think it depends on the price of the electricity. The Canadian company must have very low price.

When hell freezes over :D

I remember when there were several active threads asking cloud mining operators to come clean, but they didn't and nothing happened. People were still blindly trusting them, buying contracts that tended to expire or get cancelled. GM was quite proficient at cancelling people's contracts half way through.
As long as people keep throwing money their way nothing will change. I'm waiting for the day when the notion of cloud mining disappears completely.

energy is not one item of outlays in Bitcoin mining...

Not to be so harsh but i would really be happy for those people who would got wrecked keeping on investing into those cloud mining companies which we have advised and do told them for a hundred times about the certain risk of these things but still continuing to trust them and throws off money.I had remembered what happened on Hashocean too back in the past which thousands have been blinded or deceived.
Back to the topic, Electricity cost is one of the factors of profitability on mining bitcoin as on the image above being given by Kakmakr it feels like heaven when you mine at venezuela but their government will surely fuck you off.

This is a specific case, but it must be admitted that the price for mining 1 BTC is really great for this company. I read one research published in May of this year and price for mine 1 BTC in Canada is calculated almost 4000$. That's probably some average price, and Bitfarms obviously has access to the most cheap energy in the country.

There are different opinions regarding profitability of mining, and it is just up to miners to find best place for mining and of course to get the best deals with electric companies. This ultimately has an impact on their profit, but at the end nobody is involved in mining just for fun - miners will mine BTC and other coins as long as they have a financial benefit of that.

Here’s how much it costs to mine a single bitcoin in your country (https://www.marketwatch.com/story/heres-how-much-it-costs-to-mine-a-single-bitcoin-in-your-country-2018-03-06)

Aren't all of them cheaters? I mean, cloud mining companies, are there people who trust them? I thought it's common knowledge that they deceive their customers, but maybe things have changed, and maybe there are some legit ones at the moment, idk.

Regarding Bitfarms' success, I'm glad for them, and I think it's a good thing for crypto community in general. It's definitely a positive news which will come to the attention of the investors reluctant to invest in crypto nowadays. And yes, I think that mining will support the development of renewable sources, it's just the matter of utilizing taxes paid by miners.

All of them are indeed cheaters, even the services that are actually running their own hardware.

In the end, those who buy into these contracts are being paid with funds coming from previous investors. In no shape or form will these services ever give you a chunk of their actual mining rewards. Currently the bear market is making sure that there is far less money flowing in these schemes, which is why you see all sorts of cloud mining services significantly increase their maintenance fees, or they blatantly not pay people at all.

Genesis Mining's contract upgrades are a complete joke. Upgrading contracts where you have to pay for "more" profitability is a clear sign that they are in desperate need of liquid BTC. No one guarantees that these upgraded contracts won't become just as worthless as the previous ones.

That is why some mining companies are already exploring renewable energy sources to cut their main cost down, last time I was reading news a private cryptocurrency mining company have a bought a old hydro-electric powered facility to be repurpose as a mining facility, and that is not the only news about mining companies exploring renewable energy as a lot of them really want to cut the cost down especially when the price of BTC is at its lowest this year, maximizing their income is one of the things they need to do.