The costs of mining activities continue to fall between the stabilization of bitcoins around $ 4000

The costs of mining continue to fall between the stabilization of the bitcoin around $ 4000

November was clearly not a good month for the virtual currency space. Until now, December has been very quiet and calm in terms of volatility and price fluctuations in the encrypted market. Bitcoin (BTC) is traded close to $ 4,000 and the cost of mining is reduced.

During the last weeks, Bitcoin fell from $ 6,300 to $ 3,500 on some exchanges. This sets a new minimum in more than a year. This also led to a bigger problem in space. The miners have stopped being profitable. There have been some reports of miners in China to close their operations.

It is possible to see that the bitcoin hash rate has decreased by almost 50% from its record high a few months ago in August. With the fall in the price of Bitcoin, the network has also been reduced. Help miners to be profitable with lower prices.

Before the network adjusted its difficulty, several analysts warned of the unproductiveness of Bitcoin extraction, something that would have made the extraction of this virtual currency more expensive than the reward provided by the network.

During a conversation with MarketWatch, Sam Doctor, the head of data science at Fundstrat Global Advisors, said the miners are recovering from the losses they incurred BTC extraction.

In September, Sam Doctor commented:

"Our model suggests that the cash cost of the extraction of each BTC on Antminer S9 is now $ 4,500, down from the $ 5,300 in September. The depreciation costs have dropped to $ 1,300 compared to $ 2,000. September, reflecting a lower cost of rig with more recent devices entering the market, with a full-time balance of $ 5,700, compared with a $ 7,300 draw in September. "

A few days ago, the second largest decline in mining difficulties on the Bitcoin network it has been registered. The difficulty has changed -15.1%. Back to November 2011, Bitcoin's difficulty fell 18%.

This is one of the most interesting things about Bitcoin. If the percentage of hashes decreases, the difficulty increases, allowing more miners to become profitable during difficult times.

In the last 24 hours, Bitcoin it has lost 2.77% of its value and has a market capitalization of $ 67.75 billion. Each BTC can be purchased for $ 3,891 according to CoinMarketCap.