What is the choke price of Bitcoin?

3 answers

• monique leroyJul 15, 2023 · 2 years ago
  The choke price of Bitcoin refers to the price level at which the majority of Bitcoin miners are no longer profitable and start shutting down their mining operations. This happens when the cost of mining Bitcoin exceeds the revenue generated from mining rewards and transaction fees. When the choke price is reached, miners may choose to sell their existing Bitcoin holdings to cover their expenses, which can put downward pressure on the price of Bitcoin. This phenomenon can have a significant impact on the overall cryptocurrency market, as Bitcoin is often seen as a leading indicator for other cryptocurrencies. It's important to note that the choke price is not a fixed value and can vary depending on factors such as electricity costs, mining hardware efficiency, and market conditions.
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• rikkkkkkkkkeFeb 12, 2024 · a year ago
  The choke price of Bitcoin is an important concept in the cryptocurrency world. It represents the price level at which mining Bitcoin becomes unprofitable for the majority of miners. When the choke price is reached, miners may stop mining or sell their Bitcoin holdings to cover their costs. This can lead to a decrease in the supply of Bitcoin and potentially impact its price. However, it's worth noting that the choke price is not a static value and can change over time due to various factors such as changes in mining difficulty, electricity costs, and market demand for Bitcoin.
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• Andreas BoyatzoglouDec 05, 2020 · 5 years ago
  The choke price of Bitcoin is a term used to describe the price level at which mining Bitcoin becomes unprofitable for most miners. When the choke price is reached, miners may choose to shut down their mining operations or switch to mining other cryptocurrencies that offer better profitability. This can result in a decrease in the overall hash rate of the Bitcoin network and potentially impact the security and stability of the network. It's important for miners to carefully monitor the choke price and adjust their mining strategies accordingly to ensure profitability.
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