TL; DR
Full story
You know that scene in The Office, where Jan walks in on Michael and the staff watching a movie during work hours?
And when Jan asks how a movie could make people work faster, Michael says:
“They actually have to… make up for the time they lost watching the movie.”
The same applies to the halving of Bitcoin and the price of BTC.
Confused? Save explanation…
Jeffries (the investment bank) just reported that Bitcoin mining was more profitable in February than in January, after BTC rose from ~$42,000 to ~$61,000.
(Okay, that makes sense: when prices go up, profits go up).
But here’s the thing…
On April 20, once the supply of new Bitcoin mined every day is halved (from ~900 to ~450), Bitcoin will be in a ‘Dunder Mifflin Movie Monday’ situation…
Because right now miners earn about +25% return on what they spend on energy every day – but once that daily return is halved…
The price has to be a bit rise above $70,000 (and usually stay there) — otherwise the average miner wouldn’t be able to cover his costs.
Brb, I suddenly felt like watching Varsity Blues…