Bitcoin mining economically impacts crypto winter according to Riot Blockchain CEO

Riot Blockchain CEO Jason Les details the economic impact of ‘Crypto Winter’ on Bitcoin mining costs. The segment took place on July 15, 2022.

Video Transcript

JASON LES: It does impact the economics. I mean, there's a calculation you make here. We can look at Bitcoin mining revenue on a dollar per megawatt hour basis. So for the leading hardware right now, Bitcoin mining-- for the DS19-- generates about $130 a megawatt hour. So when you are looking at power prices relative to that revenue figure-- and that's whether you have a block of power secured or not.

If, for example, you're a miner that's just real-time procuring power, if the price of power is above 130 megawatt an hour, it doesn't make any economic sense to mine. So whether you're real-time buying or you're making a decision with your block of power, you are looking at your revenue opportunity with Bitcoin, you're comparing that to the opportunity in the market, and you're making an ongoing decision on how to allocate your power.

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