J.P. Morgan: Bitcoin mining cost drops to $18,000! Decreased sensitivity to electricity price changes

In a recent report by the financial services company JPMorgan Chase, the production cost of Bitcoin has been lowered, mainly due to a reduced sensitivity of mining costs to changes in electricity prices, resulting in the production cost of each Bitcoin dropping to around $18,000.

Cambridge Alternative Finance Center Adjusts Bitcoin Electricity Consumption Index CBECI

As bitcoin mining hardware advances and computational power continues to increase, the Cambridge Alternative Finance Center has made modifications to the calculation model of the Bitcoin Electricity Consumption Index (CBECI) to make it more accurate and reliable.

After the adjustment, it was found that the electricity consumption of bitcoin mining is lower compared to before the adjustment, meaning that the estimated cost of mining needs to be lowered.

JPMorgan: Bitcoin Production Cost Drops to $18,000

According to a report by The Block, following the modification of CBECI, JPMorgan has lowered its estimate of bitcoin production cost in the report, stating:

"Using the new method, the current bitcoin production cost is around $18,000, whereas using the old method, it was $21,000."

In the previous calculation model, every one-cent change in electricity cost per kilowatt-hour (kWh) would result in a bitcoin production cost change of approximately $4,300, but after the modification, it has decreased to around $3,800.

This means that the impact of electricity price fluctuations on bitcoin mining costs is now smaller than before. With the current price of bitcoin at around $26,250, bitcoin miners can earn approximately $8,250 per coin.

However, the next bitcoin halving is expected to occur around April next year. Under unchanged conditions, costs are expected to double, posing a significant challenge to bitcoin miners in cost management.