In a recent report by financial services firm JPMorgan Chase, the cost of producing Bitcoin has been lowered, mainly because mining costs have become less sensitive to changes in electricity prices, bringing the production cost of each Bitcoin down to about $18,000.
Cambridge Center for Alternative Finance adjusts Bitcoin Electricity Consumption Index (CBECI)
As Bitcoin mining hardware advances and computing power continues to rise, the Cambridge Center for Alternative Finance has modified the index’s calculation model in order to make the Bitcoin Electricity Consumption Index (CBECI) more accurate and reliable.
After the adjustment, it was found that the electricity consumption of Bitcoin mining is smaller than before the adjustment, which means that the estimated cost of mining needs to be lowered.
JP Morgan: Bitcoin production cost drops to $18,000
According to a report by The Block, after CBECI revised it, JP Morgan lowered its Bitcoin production cost estimate in the report. The report stated:
"Using the new method, the current cost of Bitcoin production drops to about $18,000, compared with $21,000 using the old method."
Additionally, a penny change in electricity costs per kilowatt hour (kWh) would have caused a change in the cost of Bitcoin production of approximately $4,300 in the previous calculation model, but this dropped to approximately $3,800 in the revised model.
In other words, changes in electricity prices have less of an impact on Bitcoin mining costs than in the past, and at Bitcoin’s current price of about $26,250, Bitcoin miners can earn about $8,250 per coin.
Having said that, the next halving of Bitcoin is expected to arrive around April next year. With all conditions remaining unchanged, the cost can be said to have doubled, which will be a challenge to the cost management of Bitcoin miners. A big test.
This Article JP Morgan: Bitcoin Mining Cost Drops to $18,000! Reduced sensitivity to changes in electricity prices first appeared on Lian News ABMedia.
