Currently, two factors influence the low cost of mining Bitcoin, just one month after Halving. The first of these is the start of the rains in Sichuan Province, China. The other is the low difficulty of mining.
Certainly, when analyzing the price behavior of Bitcoin, these factors seem blurred at first glance. But, in the complex world of cryptomontages, everything is closely related.
The premise is that mining is cheaper today than was thought at the beginning of the year. This could lead to a drop in the price of Bitcoin.
Why can the cost of mining Bitcoin be considered low?
In February of this year, the firm TradeBlock said that after Halving, the cost of mining Bitcoin would be about $15,000. Before the cut, it was almost $7,000. However, a month after the event, everything looks very different from that forecast.
The cost of mining Bitcoin currently ranges from $5,000 to $8,000 depending on whether it is a small-scale miner or a large-scale facility. Comparing the total forecast by the aforementioned firm and the actual amount, it is clear that the cost is considerably low.
This situation has favoured the small miners and, of course, the big ones as well. The former were practically doomed to disconnect their equipment or, at best, redirect it to mining other cryptosystems. It was at this point that the two factors that froze the cost of mining appeared.
First factor: rainfall in Sichuan province
The arrival of winter in Sichuan province is a fact that impacts the price of Bitcoin every year. During this time, large surpluses of energy are produced in hydroelectric plants. The cost of electricity drops to $0.04 per kilowatt-hour.
It is so profitable to mine at this price of electricity that miners from other regions disconnect their equipment and move to Sichuan. The result of these favorable conditions is that, for large farms, the cost of mining Bitcoin is now between $5,000 and $6,000.
For small miners, the cost is higher, approximately $8,000, because they mostly use S9. This mining company consumes a lot of energy compared to its low productivity. Despite this, its profitability is maintained.