Matt d’Souza, Blockchain Opportunity fund manager and Blockware Solutions CEO, predicted a drop in bitcoin in the absence of a new wave of rising prices. The reason is massive cryptocurrency sales by miners, which provide 30% of the network hash.
Expect Extreme Capitulation if #Bitcoin trades sideways
BTC is at $ 8.550 Post Halving:
1.s9 at $ 0.03 now make $ 0 (13.5TH & 1.4kw)
2. Mid Gen (Inno / Canaan) at $ 0.0393 now make $ 0 (30TH & 2.4kw)
3. Next Gen (s17 NOT +) at $ 0.07 now make $ 0 (50TH & 2.2kw)
This is 30% + of the Network– Matt D’Souza, CPA (@ mjdsouza2) May 11, 2020
Matt d’Souza, who, as the CEO of the mining equipment supplier, is notorious for the cost structure of cryptocurrency mining companies, presented his calculations of the profitability of popular devices, and his conclusions were disappointing.
According to his estimates, with quotes in the region of $ 8500 after the third halving, about 30% of the current hashrate is ensured by the operation of unprofitable ASIC devices.
“At the price of $ 8550, the Antminer S9 model (13.5 TH / s and 1.4 kW) does not make a profit at the cost of electricity of 3 cents / kW. Newer Innosilicon / Canaan miners (30 TH / s and 2.4 kW) have zero recoil at an electricity price of $ 0.0393. For the new Antminer S17, this threshold is at 7 cents (50 TH / s and 2.2 kW) “– brought his calculations d’Souza.
The manager of the Blockchain Opportunity fund came to the conclusion that, given the unprofitability of bitcoin mining, miners can start selling BTC from reserves in order to stay afloat. According to observations d’Souza, the process of disconnecting equipment has already begun.
Recall that the halving of the award of bitcoin miners for the mined block led to a decrease in their income by 44% and the computing power of the network by 16%.
Forklog previously published special material on the prospects for bitcoin after the May 11 halving.
Subscribe to ForkLog news on Telegram: ForkLog Live – the entire news feed, ForkLog – the most important news and polls.
–
Found a mistake in the text? Highlight it and press CTRL + ENTER
