Test

Bitcoin

JPMorgan has recently recalibrated its Bitcoin production cost estimate, following a revision in the Cambridge Bitcoin <a href="https://ultramining.com/news/en/crypto-mining-with-flare-gas-a-green-solution-or-environmental-setback/" rel="noopener noreferrer nofollow">Electricity</a> Consumption Index (CBECI) methodology. The prominent financial entity downsized the estimate from $21,000 to $18,000. Spearheaded by Nikolaos Panigirtzoglou, the team emphasized that future fluctuations in <a href="https://ultramining.com/news/en/upcoming-bitcoin-halving-threatens-mining-profitability-analysts-warn/" rel="noopener noreferrer nofollow">electricity prices</a> would exert a diminished influence on Bitcoin mining expenses, according to <a href="https://www.benzinga.com/markets/cryptocurrency/23/09/34382133/jpmorgan-drops-bitcoin-mining-cost-estimate-halving-event-could-impact-miners-profits" rel="noopener noreferrer nofollow">benzinga</a>. 
Consequently, the altered CBECI methodology proposes not treating all mining equipment contributing to Bitcoin's <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/" rel="noopener noreferrer nofollow">hash rate</a> equally. This stems from the practice where miners continuously transition to more efficient machinery or manage a conglomerate of diverse devices with varying efficiencies. In essence, the shift acknowledges the diverse range of machinery and operational nuances prevalent in the crypto mining sphere. 
Moreover, the analysts highlighted a notable shift in the sensitivity of Bitcoin production cost to electricity costs. Prior to the update, a one-cent change per kilowatt-hour induced a $4,300 variation in production cost. Following the update, this sensitivity slightly falls to about $3,800. Nonetheless, experts anticipate a surge in sensitivity post the 2024 Bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a> event, almost doubling the current figures. Consequently, electricity cost shifts will bear a more substantial impact on the overall expenditures, urging miners to focus more on cost management strategies. 
Subscribe to our Telegram <a href="https://t.me/ultraminingcom" rel="noopener noreferrer nofollow">channel</a>! Only the most interesting stuff there

Bitcoin Halving Event to Test Miners as JPMorgan Adjusts BTC Production Cost Estimate

Ultramining_Eng

Other articles published on Sep 11, 2023

Shiba Inu Burn Rate Surges – Exciting Investors

BRICS: Saudi Arabia Will Become the Next Europe, Says MBS

XRP Bulls Return Strong Amid Token Price Facing Headwinds

Duduk Perkara Akun X Vitalik Buterin Diretas, Ada Unggahan Crypto Scam Bikin Sesak Napas

Russia ‘Should Scrap Digital Rubles Buying Limit for Foreigners,’ Says Top MP

Huobi Ventures Invests in Magic Square to Transform the Future of Crypto

Join our free newsletter for daily crypto updates!