China Mining Giant Reveals Breakeven Price for Cryptocurrencies Including Bitcoin

Shixin Mao, co-founder and CEO of “F2Pool,” the world’s 6th largest mining pool based in China, announced a standard price list containing the break-even prices of major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Zcash (ZEC) when mined with various mining equipment.

The break-even point of mining, where cryptocurrencies such as Bitcoin are acquired as a reward for solving difficult equations using lots of electric power, may be used as a reference to forecast the future movement of the cryptocurrency market.

If the price of the Bitcoin falls below 36,792 yuan (about 5,376 dollars), it means that the mining of the cryptocurrency using Antminer T9 will no longer be profitable. If the S7 model is used, the breakeven point for Bitcoin will be much higher at 79,288 yuan (about 11,581 dollars).

In contrast to S7, mining Bitcoin on the Antminer T9 model released in January 2017 will produce profit even with the current Bitcoin price.

On the other hand, the breakeven point of newer Innosilicon T2 is the lowest, at 26,636 yuan (about 3,891 dollars).

Antminer S9: $5,376
Antminer S7: $11,581
Innosilicon T2: $3,891

In mid-August, NVIDIA, a U.S. graphics processing unit (GPU) manufacturing company, revealed that the cryptocurrency mining equipment sales in the second quarter of 2018 were significantly lower than it expected.
The company declared that it does not anticipate blockchain related sales to increase significantly by the end of the year.

In July, TSMC, a major microchip manufacturer in Taiwan, revised its annual revenue and projected capital investment downward again. This is due to the fact that the growth rate in the cryptocurrency mining field is slow compared to that of other fields.