Mining Bitcoin is Not a Good Deal Now; JPMorgan Says

Mining Bitcoin is Not a Good Deal Now; JPMorgan Says

Global investment bank JPMorgan affirmed in a recent note that mining bitcoins right now is not worthy as the global average “production-weighted cash cost” to produce a Bitcoin was superior in the fourth quarter than the current price of a BTC, according to Bloomberg news citing JPMorgan sources.

Analyst of JPMorgan said that while the average production cost of Bitcoin was around $4,060 in the last quarter of 2018, the BTC/USD current price is below 3,600 dollars, well below the mining price.

Of course, Bloomberg notes it is not for all miners as there is “a big spread around the average, meaning that there are clergies winners and losers.”

Chinese miners are among the winners and they are able to pay much less while mining for a bitcoin that costs around $2,400 per unit. The reason is the electricity cost that Chinese miners pay, that is much lower than the global average.

“The drop in Bitcoin prices from around $6,500 throughout much of October to below $4,000 now has increasingly pushed margins further and further negative for just about every region except low-cost Chinese miners,” JPMorgan analyst Natasha Kaneva said.

In this framework, JPMorgan is expecting that the number of miners will decline in the months ahead due to the excess of costs. The exit of competitors will benefit the remaining mining force, and it will lower the hash rate, the computing power that is required to min bitcoins.

So, it will also make miners produce more bitcoins with the same level of energy consumption. So, bitcoin will become cheaper.

In this case, China is the safe haven of bitcoin miners, but offer and demand, as always, is the real factor in bitcoin production.

Recently Similar News

cex-promotion exmo-promotion

Latest Guides

Latest News

CoolWallet,Promotion,Wallets

For a Limited Time, You Can Get a Personalised CoolWallet S

Fancy getting yourself a Coolwallet with a personal touch? Then head over to  CoolWallet now and get yourself a customised wallet for you to store your crypto with your name on it. These new customised CoolWallet S cards are offered in a bid to make cryptocurrency investment more attractive to their users. And of course, […]

15 September, 2019
Giveaway,KuCoin,Promotion

Another 2nd Anniversary Promo Announced at KuCoin, KuMEX FOMO

KuCoin is celebrating their 2nd anniversary and to celebrate they have detailed several new promotions, but it seems they aren’t over yet, with one more outlined for KuMEX FOMO. Earlier this week, we detailed 5 different promotions that will take place over the next 2 weeks, but now there is more which you can get […]

14 September, 2019
Coinbase,Coinbase PRo,Dash,Listings

Dash Set For Monday Coinbase Pro Listing

One of the most popular trading options in the crypto world, Dash, will go live for trading on Coinbase Pro from Monday, 16th September. While official trading will begin the following day at 9 am (PST) on Tuesday, 17th September, users will be able to begin depositing Dash to their Coinbase Pro accounts up to twelve hours […]

14 September, 2019
Exchange Platforms,Kraken,Listings,Tokens

ICX Now Available On Kraken

Kraken has unveiled the latest asset available for trading on their platform, ICX. The San Francisco-based outfit commenced trading for this new token, which was created by the South Korean blockchain project, ICON, yesterday, 12/09/2019.  However, ICON itself is no newbie to industry and in fact, is one of the oldest and largest blockchain ins […]

13 September, 2019
Binance USA,Launch,Updates,USA

Binance USA Opens Its Doors Next Week

The much-anticipated US trader targeted platform from Binance, Binance USA, will begin opening its door to traders from next week. The news has come at the perfect time for US traders who had previously been going about their day to day trading activity on the generic international Binance platform. This is because after Binance updated […]

12 September, 2019
Closure,Exchange Platforms,Updates

Ethfinex Reveal Further Details on Closure

Last month, Ethinex revealed that they would be shutting up shop in their existing format and rebranding as DeversiFi. While the transition period is on-going, they have detailed some important information about the final closure of their existing operational format. The first point of note in regards to this is the fact that a date […]

11 September, 2019
Exchange Platforms,Giveaway,KuCoin,Promotion

KuCoin Offer 2nd Anniversary Promotions Worth $450,000 to Users

KuCoin are about to celebrate their second anniversary and they want to thanks users with a flurry of new promotions offered on a number of crypto assets over the next two weeks. These new promotions cover a wide range of different trading options, eligibility requests and time limits. With this in mind, they should be enticing to a wide number […]

10 September, 2019
CEO,Exchange Platforms,localbitcoins

LocalBitcoins Name New CEO

Peer-to-peer trading platform, LocalBitcoins has had a shake around in boardroom, with Sebastian Sonntag being named as the new CEO. He will be taking over the reins from Nikolaus Kangas, who is the brother of Jeremias Kangas who founded the exchange platform back in 2012, after being “convinced of Bitcoin’s importance in a global economy”. […]

9 September, 2019