Bad news: mining cryptocurrency may no longer be your cash

Bitcoin has lost more than half its value since its price peaked late last year above $19,000.

According to a mining model developed by the data science team of Fundstrat's Thomas Lee, bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038. Fundstrat's model incorporates three factors: the cost of equipment, electricity and other overhead such as maintaining cooling facilities.

If the cost to create bitcoin exceeds the reward, miners theoretically lose incentive. It's got to be getting to the point that some of them may be losing money and considering to turn off their machine. (recommend FuninUSA for more discussion about bitcoin)

For some speculators, this phenomenon is a clue that the prices may be near a bottom as supply eases. But when it comes to cryptocurrency, things get more complicated since you have to concern about the differing electricity costs worldwide. For example, in China, miners would place their machines beside the hydropower station, where the electricity costs are merely 4 cents per kilowatt hour or even less.

Do you believe the price of cryptocurrency will bounce back again in someday?