JPMorgan Announced: How Much Does Bitcoin Cost to Produce? - Coin Newsletter

Banking giant JPMorgan has updated its calculation of how much it costs to produce a Bitcoin (BTC).

JPMorgan analysts wrote that the cost of generating BTC increased from $42,000 to $45,000** as the hash rate on the Bitcoin network changed.

"We expected a significant fall of hash with the withdrawal of Bitcoin miners from the network who were unable to make money after the halving," the bank said in its report. Although it is delayed, this prediction turns out to be correct."

"Based on the current hash rate and electricity consumption, we estimate the cost of Bitcoin issuance to be around $45,000, which is well below current prices," said the team, led by Nikolaos Panigirtzoglou.

JPMorgan analysts are still targeting $42,000 in the medium term. It has been announced that the current estimate of $45,000 may be updated with the change in the hash rate and the efficiency of the mining devices.

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