JPMorgan: Bitcoin Price is Now Lower Than Cost of Mining One BTC

[Goodcat49]

According to research on the ground, the production-weighted cash cost to create 1 Bitcoin (BTC) averaged approx. $4,060 worldwide in the fourth quarter (Q4) of 2018, analysts from JPMorgan Chase Co. reveal. This cost is much higher than the current Bitcoin price as Bloomberg reports.

BTC itself is currently changing hands at around $3,600 with a market cap of over $63.796 billion. It doesn’t appear like such a big deal. However, there is a huge feast around the average, implying that there are several vibrant losers and winners.

According to coinmarketcap data, Ethereum is trading at $123 with a market cap of more than $12.93 billion and Ripple at $0.3057 with a $12.597 billion market cap. 

Low-cost Chinese crypto miners are in a position to pay much less – the guesstimate is approx. $2,400 per BTC, by influencing direct electricity (power) buying agreements with power generators like aluminum smelters looking to sell surplus electricity generation, JPMorgan analysts being led by Natasha Kaneva revealed in a January 24 report about digital currencies which was fronted by Joyce Chang.   

High Cost of Electricity Threatens the Industry   
Power tends to be the highest cost for crypto miners, necessary to run high-powered computer rigs that process data blocks in order to earn BTC.   

“The drop in BTC prices from approx. $6,500 during October to underneath $4,000 now has more and more pushed margins further negative for just about every region except low-cost Chinese crypto miners,” analysts revealed.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/bitcoin-price-mining/