Bitcoin USD 15,000 in 2020
A new report ensures that the minimum price of Bitcoin, after halving, should be between USD 12,000 and USD 15,000 for mining to remain profitable.
The Blockchain analysis company, Tradeblock, published a new report in which they affirm that the Bitcoin halving planned for May 2020, will force the miners to get a Bitcoin in the USD 15,000 so that mining remains profitable. According to the report, the cost of the mining company during the year 2019 was USD 6,800 and after halving the cost of mining will be between USD 12,000 and USD 15,000. With the rewards reduced by halving, only an increase in the price of Bitcoin can make the activity of the miners remain profitable.
This is the main reason why most analysts see a bull market in the near future of Bitcoin. The previous two halvings were the triggers for a major upward movement and most cryptocurrency enthusiasts and investors expect the same scenario to be repeated this year. However, the halving and profitability of the miners can give us a fairly clear idea of the minimum prices necessary for Bitcoin after the event, but that does not mean that the price stagnates there. Most analysts agree that the increasing adoption of cryptocurrencies and the entry of institutional capital will boost the price of Bitcoin, even at USD 100,000 in the coming years.
In the Tradeblock report they explain: "Commercial miners were able to operate with a healthy profit margin last year thanks to the increase in the price of Bitcoin during the year. As the resources dedicated to mining increase over time, so do efficiency gains and with them the costs of mining. So, to maintain healthy profit margins for miners, an increase in the hash rate is usually required to match the increase in the price of Bitcoin."