Even in the face of future constraints and the General decline of the market of Chinese miners still operate normally and profitably.
According to Bloomberg, the mining activity will be very profitable in China, even if the price of bitcoin falls to $ 7,000.
In early 2017, the price of bitcoin was just $ 1.000, and in December it rose to a record level of 20,000, which, of course, attracted even more miners, which began to consume even more energy.
China has long been a refuge for miners due to the fact that the domestic demand of electricity exceeds supply.
Analysts Bloomberg New Energy Finance (BNEF) has published a report on 10 January in which they argue that mining companies in China will be profitable even if the price of bitcoin falls to 6,925 USD.
According to the analyst Sophie Lou, mining in almost all circumstances, will remain profitable in China:
Mining bitcoins at the current price is likely to be a profitable business regardless of the pricing policy for electricity will be in China.
After a closed session in December, at which the people’s Bank of China announced that the policy against the miners have become more stringent, many have expressed concerns that miners will be forced to withdraw from China. But this analysis proves that mining companies in China, including giants such as Bitmain, BTCC, BW mining and BTC.com while not in danger.
A drop in the ocean
In China, of course, is the majority of miners.
However, according to statistical data from BNEF, the share of miners in total electricity consumption of the country is not so great. Chinese miners consume 15.4 terawatt hours of electricity, accounting for only 0.2 percent of the annual electricity production in China.
The highest electricity rate for Chinese miners is 0.13 dollars per kilowatt-hour. However, according to Lou, operators are able to negotiate prices down to 0.03 us dollar, meaning that the mining business will be profitable in China, while the price of bitcoin will stay above $3,869.