JPMorgan estimates the average cost of mining Bitcoin

JPMorgan analysts trimmed the estimated cost of mining one BTC from $21,000 to $18,000. The revision followed Cambridge Centre for Alternative Finance’s methodology for the electricity consumption index in mining, The Block reports.

CCAF acknowledged, not all equipment should be treated equally, as participants often switch to newer, more capable devices or use a mix of machines with different efficiencies.

Changes in electricity prices are expected to have a smaller impact on mining efficiency, according to the bank’s analysts.

“Earlier we calculated that a rise or fall in this factor by one cent per kWh would lead to mining costs of $4,300. After revising the methodology we lowered the estimate to $3,800. After halving it will automatically double,” — the report says.

The expected April 2024 halving of the block reward will make cost management even more important for the industry. According to experts, the event will be a stress test for Bitcoin mining participants given their high sensitivity to electricity prices.

Earlier, mining difficulty of Bitcoin decreased by 2.65% as a result of the latest recalculation.

Earlier, the cryptocurrency mining equipment manufacturer Bitmain pledged to compensate customers in the event of a significant drop in the price of digital gold.