“Mining” Bitcoin is a notoriously expensive business—recent calculations by the lighting company Elite Fixtures suggest that it costs a fortune to mine one Bitcoin in some countries, with the cost being as much as $26,170 in South Korea. Now analysts at Fundstrat have said that it’s no longer particularly profitable to mine Bitcoin. “Bitcoin currently trades essentially at the break-even cost of mining a bitcoin,” the research house said in a Thursday report.
As CNBC noted, miners not only have to deal with increasing competition and a falling Bitcoin price—they’re also being stung by another part of their revenue, transaction fees. While Bitcoin adherents cite low fees as an advantage of the cryptocurrency over traditional finance networks, the median fee for a transaction reached $34 in late December. Now it’s down below 50 cents.
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