Mining cryptocurrencies such as Bitcoin (BTC) is one of the primary means by which people may acquire cryptocurrencies since miners get incentives for verifying transactions and safeguarding the network.
Frank Holmes, CEO of investment company U.S. Global Investors said that the price barrier below which Bitcoin miners will cease operations is $12,000.
Earlier this year, Holmes predicted that Bitcoin might beat gold due to the engagement of millennials, undermining the precious metal’s role as a store of wealth.
Globally, it’s now assumed that you’ll need about $12,000 to operate a mining rig; thus, everyone and the typical person are shutting down [their mining rigs].
According to CoinMarketCap statistics, the flagship digital asset’s price was $19,139 at press time, a decrease of 0.45% over the previous 24 hours but a gain of 0.65% over the previous week.
The mining hash rate reached a new all-time high (ATH) in early October, despite Bitcoin bulls and bears fighting for momentum as the currency has struggled to achieve the psychological barrier of $20,000.
Nonetheless, if the severe forecasts come true, it might mean doom for crypto miners, particularly in light of the European Union’s proposal of a new rule that intends to develop energy efficiency labels for assets such as Bitcoin in an effort to reduce the sector’s energy use.
Finbold said that a quarterly analysis indicated that Bitcoin mining only uses 0.16 percent of worldwide energy output and amounts to 0.1 percent of global CO2 emissions, despite critics concentrating on its negative environmental effect.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.