📣 UNDERSTAND THE RELATIONSHIP BETWEEN BITCOIN MINING COSTS AND PRICE PREDICTIONS 📎
🥂 Bitcoin mining costs include the cost of purchasing a mining machine, electricity costs, and other costs such as operating costs, maintenance costs, etc. The current average Bitcoin mining cost is $45k. This means miners are losing money, as Bitcoin price is only around $40k.
💯 Halving is an event that reduces the reward by half for each Bitcoin block mined. Halving takes place every 210,000 blocks, approximately every 4 years. After the halving, the cost of mining Bitcoin will decrease to around $26k. This is because the block reward will be halved, causing miners to need less Bitcoin to break even.
🛍 Miners are investing a lot of money in mining machines and electricity. Therefore, they will have to sell Bitcoin if the price does not increase. This will cause the price of Bitcoin to decrease further.
👍 Recommended
✅ If Bitcoin price drops below $30k it is a good opportunity to buy Bitcoin. The reason is because miners will have to sell Bitcoin at this price to compensate for mining costs.
✅ If Bitcoin price fluctuates between $32 - $35k, that is also a reasonable price to buy Bitcoin. The reason is because miners will still lose money at this price, but they will not have to sell Bitcoin at too cheap a price.
