How much does BTC mining cost? ? ?

The answer is about 42,000

Mining costs will definitely affect the lower limit of BTC prices under certain conditions!

So how to correctly measure mining costs? We can use a simple calculation model to deduce:

Mining costs mainly include 2 aspects: purchasing mining machines and later operation and maintenance. Among them, the later operation and maintenance costs mainly include electricity costs and other (labor, factory, maintenance, loans, etc.) operating costs. We assume that electricity costs account for 70%, other costs account for 30%, plus the cost of purchasing mining machines, which constitutes the main cost of miners.

The price of computing power refers to the amount of BTC (including block rewards and handling fee income) that can be generated per E computing power (1E = 100w T) per day, which is currently 0.809;

The unit electricity price is $0.053. I selected 5 mining machines currently on the market as samples, among which S19 XP Hyd is the main mining machine in the last cycle, T21 is the main mining machine in this cycle, and S21 is currently selling futures on the official website, which theoretically has not been deployed in large quantities. All mining machine parameters and prices are collected from Bitmain's official website.

The above table is the result calculated based on the above model. It can be seen that when the BTC price is $42,000, the profit margin of the main mining machine T21 is negative. This means that it is more cost-effective to buy BTC in the secondary market than to mine at this time.

When the BTC price is lower than $56,500, the payback period of T21 takes 48 months. Generally speaking, the maximum service life of a mining machine is about 3-4 years. After 3 years, even if the mining machine does not break down, it will be replaced by a new mining machine due to its backward energy efficiency. By then, the residual value of the old mining machine will be almost zero, and it can only continue to shine and heat for the miners with extremely low or even free electricity, or it will have to be sold by weight of scrap iron. Therefore, for the T21, which can only pay back in 48 months, this price is too unfriendly. Assuming that the price of BTC does not rise in the future, it is equivalent to the miners who have just paid back after 3 years of hard work facing elimination again. Who is willing to do such a business?

Therefore, from this perspective, BTC below 56,500 also has a certain cost-effectiveness, especially suitable for friends who like to invest regularly.