Bitcoin Miners at the Risk of Being Out-Of-Business if BTC Drops Below $12,000: Frank Holmes
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Frank Holmes of Global Investors has warned that Bitcoin miners could be displaced if the bearish descent of the cryptocurrency industry persists.
One of the primary ways for people to obtain cryptocurrencies like Bitcoin (BTC) is through crypto mining, which rewards participants for validating transactions and protecting the network. However, a drop in the price of Bitcoin, for example, would make the entire mining process significantly unattractive.
Holmes on Bitcoin Miners Potentially Losing Out
In an interview with the popular financial media site Benzinga webcast yesterday, CEO of investment firm US Global Investors Frank Holmes stated that the price at which Bitcoin miners could cease operations is $12,000, considering that is the break-even point at which they become unprofitable.
Holmes, who earlier this year questioned the role of gold as a store of value by predicting that Bitcoin may surpass the yellow metal because of millennial involvement, stated that:
“Globally, right now, it’s basically implied that you’re going to have to have like $12k, everyone starts shutting down, the average person starts shutting down [their mining machines].”
The benchmark cryptocurrency currently trades around the $19K,200 axis, up by 0.4% as of the mid-London session on Thursday.
Bitcoin Criticism Not Entirely Factual
Bitcoin’s miners have remained indifferent, as seen by the mining hash rate reaching a new all-time high (ATH) in early October, even though the asset has been failing to reach the critical $20,000 mark as bulls and bears fight for dominance.
However, if the projected worst scenarios come to pass, it might be disastrous for cryptocurrency miners, particularly amid the European Union’s proposal for a new rule that aims to generate energy efficiency labels for items like Bitcoin to limit energy use in the industry as the region battles an energy crisis.
Notably, despite detractors concentrating on its negative effects on the environment, a recent study concluded that Bitcoin mining only consumes 0.16% of worldwide energy output and contributes only 0.1% of the world’s CO2 generation.
You can purchase Lucky Block here. Buy LBLOCK
