The image illustrates the cost of producing Bitcoin after the split for each major mining company. It’s noted that current Bitcoin prices are very close to the average production cost, which implies the following:

1. Mining profitability: When Bitcoin prices approach production costs, profit margins for mining companies decrease. Some may operate at a loss if prices drop further.

2. Price stability: Bitcoin prices may find support around production cost levels, as prices falling below this may drive some miners out of the market, reducing supply and potentially stabilizing prices.

3. Long-term impact: Over the long term, sustained prices near or below production costs could reduce investment in new mining equipment and slow network growth.

4. Supply-demand balance: If the number of miners declines, the supply of new Bitcoins in the market may decrease, potentially putting upward pressure on prices if demand remains steady or increases.

Overall, this situation could lead to fluctuations in the Bitcoin market and make investment and mining decisions more challenging.

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