JPMorgan Chase: Bitcoin Mining Cost Reduced from $50,000 to $45,000

JPMorgan Chase: Bitcoin Mining Cost Reduced from $50,000 to $45,000

JPMorgan Chase: Bitcoin Mining Cost Reduced from $50,000 to $45,000

According to a report by CoinDesk, a research report released by JPMorgan on Thursday shows that the current computing power and energy consumption of the Bitcoin (BTC) network indicate that the mining cost of a single Bitcoin has been adjusted from $50,000 to $45,000.

The bank previously predicted that as the growth rate of Bitcoin supply slows down due to halving of mining rewards, less profitable miners would exit the network, resulting in a significant decrease in computing power. JPMorgan analysts stated that although the timing has been delayed, this situation has now occurred.

The report points out that the delay may be due to the newly launched Runes protocol on the network (a new token creation method in the Bitcoin ecosystem), which has temporarily caused transaction fees to soar, extending the survival time of some miners. JPMorgan analysts pointed out that this temporarily provided a boost to miners’ income immediately after the Bitcoin halving, as Bitcoin miners were able to offset the loss of issuance rewards caused by the halving by the surge in transaction fees, keeping their block rewards almost unchanged.

However, as the Runes craze subsides and the temporary boost for miners disappears, the decrease in energy consumption on the network exceeded the decrease in computing power, indicating that inefficient non-profit miners have exited and formed a feedback loop with the Bitcoin price. Due to several previously determined headwinds, including a lack of positive catalysts and weakened retail momentum, JPMorgan foresees limited upside potential for Bitcoin in the short term.