JPMorgan: The Cost of Mining 1 BTC is $18K

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JPMorgan experts have revised estimates regarding the cost of mining 1 BTC; previously estimated at $21,000, they have lowered it to $18,000.

This happens after the Cambridge Center for Alternative Finance adjusted its methodology when calculating electricity usage in mining operations.

The CCAF noted that, for accuracy, different types of equipment as well as upgrades to newer machines should be taken into consideration, each with their own varying levels of efficiency.

The experts also suggested that not only will changes in electricity prices have less of an effect on the profitability of mining Bitcoin, but that the cost itself would decrease to $3,800 and further double in size as a result of the BTC halving that is due to arrive in April 2024.

The drop in difficulty of mining that just happened will also mean cost management is even more important for those involved in the production of the first cryptocurrency as its value is especially sensitive to electricity costs.

Bitmain, a well-known mining equipment maker, has already promised to reimburse customers in the event of a significant reduction of its worth.