What Is the Relationship between the Price of Electricity and the Breakeven Point for a Cryptocurrency Miner?
The price of electricity is the single largest variable operational cost for a miner, making it directly and inversely related to the breakeven point. As electricity price rises, the breakeven point (the minimum cryptocurrency price needed to cover costs) also rises.
Conversely, lower electricity prices reduce the breakeven point, increasing the miner's profit margin and the profitability of their hardware.