New study by QFRG: Why you should NOT invest in BTC mining?

28 August 2018

Quantitative Finance Research Group presents results of their new research project. The main aim of the study is to analyse the efficiency of BTC mining under current market conditions.
Initial assumptions cover
(1) price of mining machine and its effective amortization period,
(2) difficulty and hash rate of BTC network,
(3) BTC transaction fees and
(4) energy costs.
The conclusion is that currently BTC mining is not profitable, except for some rare cases. The main reason of this phenomenon is the fast and unpredictable increase of difficulty of BTC network over time which results in decreasing participation of our mining machines in BTC network hash rate. The research is augmented with detailed sensitivity analysis of mining efficiency to initial parameters assumptions. As a result, one can observe that the conditions for BTC mining to be efficient and profitable are very challenging to meet. 
A short clip presenting results of our research is available here. You can also download detailed presentation, and full text of the article

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