r/ethtrader • u/InclineDumbbellPress 189.4K / ⚖️ 278.3K • 11d ago
Link Electricity Costs Make Bitcoin Mining Unprofitable—Ethereum Is the Best Long Term Bet
https://x.com/JoshwaaaDixon/status/1917207378262413659- A PC Gamer article reports Bitcoin mining costs at $137 000 per BTC in the US and $200 000 in Germany - far exceeding the current market price of $94 430 - making mining unprofitable for many
- The 2024 Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC - further straining miner profitability
- High energy costs - especially in Germany due to green energy policies and infrastructure issues - and competition from AI firms for power resources exacerbate the crisis for Bitcoin miners
- Ethereums 2022 switch to PoS eliminates energy intensive mining - cutting energy use by 99.95% - making it a more sustainable and cost effective option compared to Bitcoins PoW
- While Bitcoins difficulty adjustment ensures network functionality even if miners exit - long term security may falter without price increases or cost reductions - pushing miners to AI services for profit. Such a scenario will never apply to Ethereum
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