The recent bitcoin rally has driven bitcoin mining profits. Profits earned from bitcoin mining have seen a clear rise since the start of April 2019 and hit a near half-a-year high on April 15, 2019.Source: BCtrendAccording to crypto analyst Alex Kruger, the breakeven cost for efficient bitcoin mining operations currently hovers around $3,550 to $4,350, while the price of bitcoin is in the $5,500-plus range at the time of this writing. That ensures a $1,000-plus profit for each bitcoin mined and a substantial profit for bitcoin miners considering the uptick momentum in bitcoin price continues.Kruger said that the breakeven cost was calculated based on an electricity rate of 5.5 cents per kilowatt hour (kWh). While electricity costs vary in different regions, the breakeven cost could vary in line with that.“[The] exact number is heavily dependent on electricity cost,” Kruger said. “E.g., last December Coingeek reported an electricity cost (inclusive of all operational expenses) of $0.073. I am using $0.055.”Given that the electricity rate in China is much lower — 3.5 cents kWh as some mining farms have claimed — when the wet season in Sichuan started, miners in China can make more than $2,000 in profit for each bitcoin mined. Over the second half of 2018, however, the breakeven cost dropped below the BTC price, leading to inefficient bitcoin mining and losses, with some miners even shutting down their operations and selling of...
