Cryptomining has been in the headlines in recent months for all the wrong reasons if you are a cryptocurrency investor or speculator. It isn’t all doom and gloom for crypto, though, as we have recently reported on newer, more efficient mining equipment becoming available from the likes of Intel and Bitmain. Moreover, on Thursday, Bloomberg reported that the cost of mining Bitcoins had reached a 10-month low.
Intel Materials on Blockscale
Some may have scoffed at the new ASIC cryptomining systems becoming available this summer, considering the dire valuation charts for all the major blockchain-based currencies. However, it now looks like new efficient mining systems coming online are quickly having a beneficial impact on the bottom lines of mining operations. Even with the ongoing crypto crash, the difference between costs and crypto valuations makes mining operations sound highly profitable for the time being.
According to data from JP Morgan, at the start of June, cryptomining operations were spending $24,000 to mine one Bitcoin (BTC). Today, they expect to mine a Bitcoin after spending only $13,000. To put that into perspective, you can sell 1 BTC today for almost $21,000, which is better than a 60% profit.
The Bloomberg report asserts the reduction in mining costs is entirely down to the deployment of more energy-efficient mining rigs. One must also remember that this is happening while energy prices are rocketing worldwide. That makes the mining cost reductions and efficiency of the latest mining equipment all the more impressive.