What is the Bitcoin miner shutdown price?

What is the Bitcoin miner shutdown price?

When the price of Bitcoin continues to decline, it is often seen that many users and miners are concerned about whether the price will fall below the shutdown price. Some users who are not familiar with the mining industry may not understand the term shutdown price for the first time. The shutdown price can be used to judge the profit and loss intuitively since miners need to consume corresponding electricity when mining. This part of the electricity cost is the cost of the miner's operation. When the mining revenue cannot cover the electricity cost, the miner will be at a loss if the miner reruns the miner. At this time, the miner will lose money, and the miner will have to shut down. Therefore, we call the bitcoin price when the mining revenue cannot cover the electricity cost the miner's shutdown price, which can also be understood as the cost price of mining.

What is the Bitcoin miner shutdown price?

The calculation of the shutdown price needs to refer to the specific miner power consumption, miner hash rate, electricity price, the whole network difficulty (the whole network hash rate), and the proportion of the miner fee in the mining revenue.

We can calculate the calculation formula of the shutdown price as follows:

Daily mining income = (miners hash rate * 86400 / network difficulty / 2^32) * (block reward + miner fee reward)

Shutdown currency price = electricity price * miner power consumption * 24 / daily mining income

Let’s take the Antminer S19 as an example for calculation. According to official data, the power consumption of the Antminer S19 is 3250W, the hash rate is 95T, and the electricity fee is calculated at US$0.077 per kilowatt-hour. At the same time, according to relevant statistics, the latest difficulty of Bitcoin is 17.62T, the hash rate of the entire network is 129.74 EH/s, and the seven-day average mining fee/block reward is 1.3%.

Take the Whatsminer M30S+ as an example. The power consumption of the Whatsminer M30S+ is 3400W, and the hash rate is 100 T. Then daily mining income=(100*86400/17.62/2^32)*(6.25+6.25*1.3%)=0.000723 BTC

Shutdown currency price=0.077*3.4*24/0.000723=8690.18 USD

At present, the shutdown price of mainstream miners is basically around $10,000. However, according to data, the price of Bitcoin fluctuates around $40,000. Therefore, it can be seen that the current profit margin of miners is quite considerable. And according to the current price, there is still room for mining with the old batch of machines. Still, the shutdown price of the old miners, such as Antminer S7, Avalon Miner A721, Whatsminer M3, etc., has exceeded $47,000, not suitable for mining anymore. For example, the shutdown price of the Antminer T9+ has reached $36,754, and the profit margin is tiny.

Of course, in addition to the electricity cost of the miners, there is also the operation and maintenance cost of the mining farm, the fee cost of the mining pool, and the cost price of the miners themselves; other costs are calculated together. In addition, electricity costs vary significantly in different regions. For example, in the Russian-speaking region, the electricity bill is about $0.054, the Nordic region is about $0.1, and the South American region is about $0.031. This also makes the shutdown price of miners in different regions vary considerably. For example, according to this electricity bill, the shutdown price of the same Antminer in the Russian region is $6,132.34, and the shutdown price in the Nordic region is $11,356.19, and the shutdown price in South America is only $3,520.42.

Generally speaking, most of the miners' income is still quite considerable. Keeping the hash rate and block production stable is only necessary to obtain a good income. The shutdown price only references data for miners based on the current market conditions; the actual value will eventually fluctuate differently depending on the difficulty of the entire network and the adjustment of electricity prices.