JPMorgan Drops Bitcoin Mining Cost Estimate, Halving Event Could Impact Miners' Profits
Portfolio Pulse from Khyathi Dalal
JPMorgan has lowered its Bitcoin production cost estimate to $18,000 from $21,000 following a revision in the Cambridge Bitcoin Electricity Consumption Index (CBECI) methodology. The new methodology assumes that not all mining equipment contributing to Bitcoin's hash rate should be treated equally. The sensitivity of Bitcoin production cost to electricity costs is expected to double following the 2024 Bitcoin halving event, which will cut the rewards miners receive in half.
September 10, 2023 | 5:07 pm
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JPMorgan's revised Bitcoin production cost estimate could influence its investment strategies and decisions in the cryptocurrency sector. The upcoming Bitcoin halving event in 2024, which is expected to double the sensitivity of production cost to electricity costs, could also impact the bank's crypto-related operations.
JPMorgan's revised Bitcoin production cost estimate reflects its understanding of the crypto mining industry. This could influence its investment strategies and decisions in the cryptocurrency sector. The upcoming Bitcoin halving event in 2024, which is expected to double the sensitivity of production cost to electricity costs, could also impact the bank's crypto-related operations, particularly if it is involved in Bitcoin mining or has significant investments in Bitcoin mining companies.
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