Besides fat-fingered whales, the other species HODLers should learn to fear are large-scale Bitcoin miners whose electricity cost is zero. The reason? Their break-even point is low enough to depress the fair market value of the Bitcoin price, dashing the asset’s seven-figure ambitions.
Just this week, Chinese police busted a gang of Bitcoin miners that stole electricity worth approximately $3 million for their crypto mining activities. Around 4,000 mining devices were being used in the illicit operation.
While the number of bitcoins that the operation had managed to produce is not clear, it is likely significant. Even more concerning is that this operation is likely just the tip of the iceberg; there could be many more illegal miners in China.