Bitcoin price went down and it could possibly go down even more on the weekend. The coin has recovered well since then but still is hanging around $5.5K level. However, this recovery of Bitcoin is failing to gain the trust of Bitcoin miners.
Noting the current situation of Bitcoin, a crypto asset manager says that because of the recent price crash of Bitcoin, miners are thinking about quitting as they do not see bitcoin mining profitable in the coming days.
The electricity bill is more than one BTC
The crypto asset manager Charles Edwards appeared on Twitter with a chart that shows bitcoin production cost. He says that the cost of electricity bill and Bitcoin production has been tested and draws a conclusion that the cost of an electricity bill is more than the price value of one bitcoin (BTC).
He believes that this is the point where bitcoin miners may turn off their rigs. Moreover, he says that the hash rate of bitcoin might also drop.
#Bitcoin miners now unprofitable.
Bitcoin Electricity Cost tested, this is the point where miners start to turn off rigs, b/c the electricity bill is more than 1BTC.
These conditions don't last long.
Expect we hold (mostly) above $5000, and then start to see Hash Rate drop. pic.twitter.com/AW7H3T3Q1D
— Charles Edwards (@caprioleio) March 13, 2020
What happens to miners and BTC if this situation keeps up?
Regarding Bitcoin mining, a Twitter user Dimi Arhontidis asked a question to Mati Greenspan the founder of Quantum Economics. Dimi actually wanted to know about the situation that can occur during the halving and what miners will possibly do. Dimi asked, “Honest question. What happens to #btc miners and btc in general if this situation keeps up during the halving?”
While responding to this question on Twitter, Mati Greenspan said that it is for sure that miners will quit mining and there is also a possibility that hash rate goes down. As Mati Greenspan stated:
“Some miners will drop out. The hashrate goes down. Difficulty adjusts, making it easier for new miners to enter the market. Bitcoin continues producing blocks uninterrupted.”
According to him, if miners decide to drop out, then they will make a way for new miners who will willingly work with the network.