In a new series of shots aimed at Bitcoin as the most dominant cryptocurrency out there, the people at JPMorgan are now stating that Bitcoin mining is not worth the value of the cryptocurrency in total – as the latest Bitcoin news show.
In other words, the JPMorgan analysts think that the cost of mining Bitcoin during Q4 was averaging about $4,060 around the world, according to Bloomberg. This, as they said, started in late November when the price of Bitcoin went below $4,000 and at that moment it became uneconomical to mine Bitcoin.
Currently, Bitcoin is trading at around $3,650 and is relatively stable after falling from its resistance level of $3,700 touched earlier this week. On top of that, Bitcoin miners in the world’s second-largest economy achieved this by directly buying electricity from power generators with excess production.
Additionally, the analysts from JPMorgan estimated that Bitcoin’s marginal mining cost would go below $1,260 if only Chinese miners remained. Per their analysis, the miners whose expenses exceed the cost of Bitcoin are expected to exit the space, in which case miners would benefit as the hash rate would be lowered and they would be able to mine more Bitcoins without raising energy consumption.
Earlier this week, JPMorgan also released another report in which it indicated that Bitcoin’s price could crash below $2,000 if the current bearish conditions persist.
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