One of the things that do not often come into the surface is the work done by Bitcoin miners when it comes to the overall cryptocurrency ecosystem. Miners are the ones who actually create the Bitcoin tokens and are given a reward for each completed block. Hence, when Bitcoin went through its downturn for the whole of 2018, it was a bad time for miners, and many had to wind up their operations.
What’s Coming Ahead?
However, when the remarkable bull run commenced earlier this year, it made for a better time for the miners and for the first six months of the year, it has proven to be profitable.
The price of each Bitcoin token rose from around $3,000 at the start of the year to around $14,000 by the end of the first six months, and that resulted in a lot of rewards for the miners. Despite the drop off in the price of Bitcoin from the highs of June, analysts have stated that Bitcoin mining is still profitable for the miners. According to one expert, the current cost for Bitcoin miners to create one token is between the range of $7,300 and $8,500. Hence, the whole thing is still profitable.
However, the ultimate question for Bitcoin enthusiasts is whether the profitability of the miners is going to have a bullish effect on the price of the token or not. Some analysts claim the bullish trend among miners may not ultimately be a great thing for the price of Bitcoin. One analyst stated that Bitcoin miners are going to be eager to sell the tokens in which they are already profitable in order to fund their future operations. When that happens, it is going to put pressure on the price of Bitcoin as a whole, and that is something that needs to be watched by traders. However, it cannot be denied that 2019 has been a great year for Bitcoin miners so far.
Featured image: DepositPhotos © zoomteam