Do you know that the mainstream media mistakenly portray Bitcoin mining as wasteful. But looking at the excessive energy being produced in some countries isn't it better to utilize this energy in mining bitcoin rather than leave it to waste.
The Hydro-Quebec in Canada, often have excess generative capacity which couldn't be applied before Bitcoin. But yeah, now thanks to Bitcoin mining that this clear energy production resource with excess energy could be utilize in generating money in the form of Bitcoin. This lowers the cost of production for the consumers.
On the other hand, if this energy is wasted, it will increase the cost for everyone by lowering the demand curve below the supply that is available. So, to get compensated, producers have to increase the prices.
So today, mining bitcoin is profitable with low cost energy on many national electricity grids.
Bitcoin miners are very cost sensitive. If they see that the costs they suffer during bitcoin mining are more than what they produce, they will take no time to shut down mining.
Bitcoin miners will shut down mining if they see the upward price fluctuations in electricity grid demand.
So, bitcoin mining could be profitable in case their is an extra power available as this will lower the costs for the consumers.
The next Bitcoin halving is going to happen in 2024 which will be the fifth halving in the history of bitcoin. That means mining difficulty will increase for miners with increased costs which may impact the prices for the consumers.
But let's see how bitcoin prices react with the next halving. Should we expect a significant price change or it still will remain how it would be. Only time will tell.
