JP Morgan: Bitcoin is in fact cheaper than its production costs
Source:
According to analysts At JPMorgan Chase & Co, the average monetary cost to create one in the fourth quarter of last year amounted to $ 4060. F given the current market valuation just above $ 3,600, the coin seems to be quite disadvantageous. However, the weighted average of the values observed is very wide spread, clearly separating winners and losers.
For example, in a favorable mining conditions in China create one BTC costs about $ 2,400. As a rule, most of the costs when mining bitcoins amounts of electricity.
In the report, JPMorgan analysts said that the fall in the price of BTC with 6 thousand below 4 significantly reduced the margin for miners in most regions. To get coins is still profitable only in the territory of China.
Source: Bloomberg
According to Bloomberg, given the decline in profitability of mining, there is a threat of collapse of the manufacturers of more expensive equipment. However, until that happens. In fact last year production of the miners in the Czech Republic, the USA and Iceland have even increased.
If a surrender were to occur, the remaining on the market the miners will enjoy the cost reduction, since in the absence of competition they can get more BTC with the same power. Analysts estimate that if the mining market will remain only the Chinese miners, the cost of mining bitcoins will drop to 1260 USD for a coin.
thewhat about diversification?
Due to lower profitability of mining coins, the miners began to look for ways of diversifying. Some even continue to mine bitcoins at a loss. Not so long ago that among the miners is gaining popularity is the delivery of equipment to the projects that work in areas with elevated computing needs.
The More data you look at . The current rate of coins can be found in our classroom .
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