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This information is not meant to be price speculation, but more to explain the #economics of Bitcoin. 🥇
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The cost to mine ⛏ a Bitcoin 🥇 in #China 🇨🇳 is currently about $3,150.
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Why is this important? ❓
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Because China 🇨🇳 makes up about 60% of the total Bitcoin Mining ⛏ Power (aka Hash Rate) in the world 🌎.
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This means that if the price of Bitcoin 🥇 goes below $3,150 then the largest Bitcoin miners in the world will no longer be profitable. 📉
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At this point they would have two options.
They could turn off their mining ⛏ operation completely and wait for it to be profitable again.
They could continue to mine, but not sell the Bitcoin 🥇until they could sell it for profit (above $3,150).
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If the second scenario plays out then this means that at $3,150 a lot of the selling pressure is relieved from the market.🚱
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Let’s think... 💭
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Every 10 minutes, 12.5 new #Bitcoins are mined ⛏. In order for a mining business to run, it must sell its bitcoins 🥇to cover its cost of doing business (mainly #electricity). ⚡️
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You might expect a large portion of this constant selling pressure to be relieved at $3,150, creating a potential floor 🌄 price there.
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Hi and welcome here! When I started on steemit, my biggest problem was to find interesting people to interact with. So, to help newcomers getting started I created a directory with other interesting and or talented steemians to follow or interact with. Feel free to check it out at https://www.steemiandir.com I am sure it will help you find like-minded people. Enjoy your stay here and do not hesitate to contact me if you have any questions!
Thank you!
Hello @hunter5!
I noticed you have posted many times since you began your journey on Steemit. That is great! We love active partipants.
I do want to point out that the Introduceyourself tag is meant to be used once only to introduce yourself to the Steemit community. You have now posted 5 times using the introduceyourself tag. Please see this link for more information on Tag Spam?
Please take this into consideration and help build a great platform!
Welcome to Steem hunter5! Partiko is officially the fastest and most popular mobile app for Steem. Unlike other Steem apps, we take 0% cut of your earnings! You can also be rewarded with Partiko Points while using Partiko and exchange Partiko Points for upvotes!
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