Bitcoin Mining Profitable only When Price is Above $8600, Digital Assets Rumbling to Short Term Highs

Costs of Mining Bitcoin Increasingly Expensive and Demanding

While the broad cryptocurrency market has climbed the past week, there has been an accounting prepared by Morgan Stanley, the investment bank, which suggests the mining of Bitcoin is not profitable at this stage unless it is trading above the 8,600 U.S Dollar price level. The costs of technology in order to ‘mine’ coins and the use of electricity make Bitcoin mining unprofitable below this value juncture. The notion that ‘harvesting’ Bitcoin is becoming increasingly expensive is a compelling philosophical question concerning the cryptocurrency’s origins and what its founding core hoped to achieve.

Bitcoins Resurgence Attracting Speculators as it Challenges Resistance

Bitcoin has rumbled to short-term highs and has seen buying momentum this weekend too. The price of Bitcoin is near 8900.00 U.S Dollars per coin. Key resistance for the digital asset appears to the 9300.00 level. If this higher value is breached, speculative fervor could aim for the 10,000 mark again, a level not seen since the first week in March. While Bitcoin is still vastly below its highs of December and January, a climb upwards and a test of the 10,000 ratios would certainly attract more speculators and raise the verbal ‘buy’ chorus from the coin’s legion of fans. However, cynics may be asking themselves if this short-term surge upwards is simply a vacuum and sucking in traders who will eventually get chewed up if the bear trend resumes.

Bitcoin Daily Chart
Bitcoin Daily Chart

Coinbase and WikiLeaks Feud Escalating this Weekend

Coinbase which is headquartered in the U.S has closed its WikiLeaks cryptocurrency account. The exchange said WikiLeaks has not honored its Terms of Service contract and is no longer allowing the news website the opportunity to change cryptocurrency for hard cash. WikiLeaks has reacted to Coinbase’s decision by calling for a boycott of the cryptocurrency exchange.

Yaron Mazor is a senior analyst at SuperTraderTV.

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Yaron Mazor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology and education. Ten years ago, Yaron sold all of his businesses and became a trader. Yaron started an education provider that taught thousands of people worldwide how to trade. Since then, he has traded every single day across every imaginable financial instrument Organic Trading System (OTS) is an unprecedented, new paradigm of trading technique, developed by Yaron Mazor. The trading system utilizes a combination of essential resources of market data (Fundamental, market participant sentiment and the basic concepts of trends), which are harmonically coordinated, in order to enable a relatively fast, simple and easy way to decide which side of the market to be trading from – the Buy side or the Sell side.