Bitcoin cost of production sinks to $13,000, says JPMorgan

Daniel Sims

Posts: 580   +21
Staff
The big picture: As the crypto crash continues to leave Bitcoin prices depressed compared to their position a year ago, knock-on effects are still playing out in various areas. One of those is the production cost, and miners' efforts to control it may be a double-edged sword for the crypto market.

JPMorgan Chase & Co. reports that the cost of mining Bitcoin has fallen to around $13,000 from $24,000 since early June. Bloomberg notes that the drop is likely an effect of the crypto winter, but it's unclear whether this could help or hinder any recovery of the cryptocurrency's price.

It's easy to pin the decline on a miner exodus after Bitcoin's price crashed from its high last November, which could be lowering the amount of electricity and processing power needed for mining. Summer heatwaves might also encourage some mining pauses. However, JPMorgan strategists led by Nikolaos Panigirtzoglou claim it's actually due to miners protecting profitability through more efficient rigs.

On the one hand, lowering mining costs to make Bitcoin more profitable could stabilize the market. On the other hand, some see that production cost as the floor for Bitcoin's price during downturns. Lowering that floor might make it possible for the crypto winter to get even worse.

Bitcoin peaked at almost $70,000 last November before tanking this spring. The downturn has sent shockwaves through various entities like crypto companies, El Salvador's government, North Korea's weapons program, and ransomware gangs.

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NightAntilli

Posts: 911   +1,184
Hope it crashes and goes away. Two things.
1. Less energy used
2. Prices come down on video cards
Nobody mines Bitcoin using graphics cards anymore. It's not profitable, because everyone is using ASICs.

As for the whole energy thing...

And
 

umbala

Posts: 684   +1,238
Nobody mines Bitcoin using graphics cards anymore. It's not profitable, because everyone is using ASICs.

As for the whole energy thing...
A couple of Youtube videos aren't going to change the fact that this crypto nonsense is using more power than a small country. FULL STOP. There's no explaining that away.

Secondly, while it may not be profitable to mine Bitcon using video cards there's plenty of other "coins" that use video cards.

https://www.nme.com/news/gaming-new...-by-crypto-miners-in-early-2021-alone-2973241

And yes, I agree with the OP. I hope all the crypto garbage collapses and becomes worthless. Also, I hope all the people who are wasting resources on this garbage all get cancer and die along with crypto.
 

NightAntilli

Posts: 911   +1,184
I’d never waste my time watching those videos because of the stupid thumbnail. Hard pass.
That's quite a stupid excuse. But you do you.

A couple of Youtube videos aren't going to change the fact that this crypto nonsense is using more power than a small country. FULL STOP. There's no explaining that away.
Ever wondered how much the world's financial system uses? Be sure you're comparing apples to apples, and not apples to jellyfish.

Secondly, while it may not be profitable to mine Bitcon using video cards there's plenty of other "coins" that use video cards.

https://www.nme.com/news/gaming-new...-by-crypto-miners-in-early-2021-alone-2973241

And yes, I agree with the OP. I hope all the crypto garbage collapses and becomes worthless. Also, I hope all the people who are wasting resources on this garbage all get cancer and die along with crypto.
I hope you'll enjoy your permanently enslaving CBDC when that rolls around. And then you'll have to live with yourself knowing that you were propagating the only way out of this permanent global enslavement.

The crapto shills never give up!!
Now one of the them is claiming nobody uses GPUs for mining.....
Nobody uses GPUs to mine BITCOIN. If you're going to argue, at least be honest.

I wonder how stupid the El Salvador junta now feels after switching to this scam as legal tender!!
They're doing fine. They bought more, which you should do also, but you won't.
Not financial advice, of course.
 

ypsylon

Posts: 525   +544
"Bitcoin cost of production..."

That's an oxymoron in itself. There is no production of ANY crypto coin. There is only waste heat, wasted electricity and tones of e-waste when generation of ASICs or GPUs (or even SSDs for Chia scam) is no longer relevant for mining because network difficulty doubles again and again.

As a person who mined BTC first on GPUs then simple ASICs and then huge boxes sapping kW of electricity I don't buy any excuses and gaslighting from crypto-shills - especially on YT. I went through every step of that scam from tiny operation on one GPU to large scale ASICs before bailing out. Phuck crypto. We would have 25% more spare electricity capacity world-wide if not for miners of 'illusory funny monies'.
 

Bobbydpue

Posts: 371   +246
The crapto shills never give up!!
Now one of the them is claiming nobody uses GPUs for mining.....

I wonder how stupid the El Salvador junta now feels after switching to this scam as legal tender!!
"Nobody mines Bitcoin using graphics cards anymore. It's not profitable, because everyone is using ASICs." If you actually read what the other person said you'd know they didn't say what you are arguing. How can people be so ignorant?
 

emmzo

Posts: 672   +912
"Nobody mines Bitcoin using graphics cards anymore. It's not profitable, because everyone is using ASICs." If you actually read what the other person said you'd know they didn't say what you are arguing. How can people be so ignorant?
He doesn't say videocards are used for Bitcoin, he just says for mining. It's a well known fact the price of Bitcoin influences all altcoins, so it also influences videocard mining of those altcoins. So, yeah, Bitcoin is influencing videocards prices, albeit indirectly. Is it so hard to understand?
 
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mattferg

Posts: 228   +235
Oh, the classic case of a FUD video calling facts FUD.

Fact is: even just a single Watt of energy is all wasted on Bitcoin, which solves nothing that we wouldn't have already a better solution for (and working for many, many years on to of that), only adds problems of its own.

Better solution? Please demonstrate a better solution for third party copyright protection or smart anti-scalp ticketing than the blockchain.

As for "wasted energy" you do realise we throw away gigawatts of green energy every day due to a lack of grid level energy storage, right?
 

mattferg

Posts: 228   +235
Crypto - the home of North Korean Weapons, Ransomware and Money Launderers. My heart bleeds for them and all the get-rich-quicker-crypto-bores.

The majority of money is laundered through dollars. Bitcoin has a fully transparent public ledger - it's pretty hard to launder money these days through it when everyone can see where your money goes or comes from. Thanks for proving a lack of knowledge?
 

mattferg

Posts: 228   +235
https://english.elpais.com/science-...oin-and-blockchain-technology-is-garbage.html

This guy, a computer science professor, explains it all, why this industry is only for greedy degenerates, why it doesn't bring anything new, why decentralization is a scam, because it's run by pools, why is it a classic pyramid, in spite of loud voices claiming otherwise, why the revered Web3 is nonsense, NFTs id1ocy, etc.

"the internet is stupid, it'll be gone within months"

Same people. 1990s.
 

fps4ever

Posts: 984   +1,477
That's quite a stupid excuse. But you do you.


Ever wondered how much the world's financial system uses? Be sure you're comparing apples to apples, and not apples to jellyfish.


I hope you'll enjoy your permanently enslaving CBDC when that rolls around. And then you'll have to live with yourself knowing that you were propagating the only way out of this permanent global enslavement.


Nobody uses GPUs to mine BITCOIN. If you're going to argue, at least be honest.


They're doing fine. They bought more, which you should do also, but you won't.
Not financial advice, of course.

LOL, just wow...
 

takaozo

Posts: 215   +313
This Bitcoin thing started excelent in 2009, but along the way got captured by big crooks.
From the freedom it promised to what it is now, that is a very long way.
Aslo the alt coins, just look at thousands of devs and the number of alt coins.
It got me a bit at start when was CPU and GPU minable. But after the ASICS were introduced I quit and never look back.
 

captaincranky

Posts: 18,820   +7,750
The majority of money is laundered through dollars. Bitcoin has a fully transparent public ledger - it's pretty hard to launder money these days through it when everyone can see where your money goes or comes from. Thanks for proving a lack of knowledge?
By this post, I assume you're ready to hunt the blockchain for the somewhere between 1 to 10 billion dollars these a**holes "misplaced". No?
 

NightAntilli

Posts: 911   +1,184
https://english.elpais.com/science-...oin-and-blockchain-technology-is-garbage.html

This guy, a computer science professor, explains it all, why this industry is only for greedy degenerates, why it doesn't bring anything new, why decentralization is a scam, because it's run by pools, why is it a classic pyramid, in spite of loud voices claiming otherwise, why the revered Web3 is nonsense, NFTs id1ocy, etc.
This is an appeal to authority and nothing more. I would dismantle everything he says, but all of you will dismiss it anyway.

"Bitcoin cost of production..."

That's an oxymoron in itself. There is no production of ANY crypto coin. There is only waste heat, wasted electricity and tones of e-waste when generation of ASICs or GPUs (or even SSDs for Chia scam) is no longer relevant for mining because network difficulty doubles again and again.
The network difficulty is purely dependent on the amount of miners. The difficulty is increased to ensure an average block time of 10 minutes when more computing power is available. If miners leave, the difficulty decreases again. And every time the miners successfully mine a block, new Bitcoin is created and rewarded to them.
The halving that happens every four years is the halving of the reward given to miners. There is no doubling of network difficulty, unless miner adoption is doubling.

As a person who mined BTC first on GPUs then simple ASICs and then huge boxes sapping kW of electricity I don't buy any excuses and gaslighting from crypto-shills - especially on YT. I went through every step of that scam from tiny operation on one GPU to large scale ASICs before bailing out. Phuck crypto.
Considering your comments about the difficulty doubling again and again, I doubt you did any actual mining. And if you did, you didn't do it long enough or well enough to know what's actually going on.

We would have 25% more spare electricity capacity world-wide if not for miners of 'illusory funny monies'.
No, we wouldn't have 25% more spare electricity capacity. Where did you get this number from? The world consumes over 173 thousand TerraWatthours of electricity per year. Bitcoin currently consumes about 82TWh of electricity per year, which is less than 0.05% of global energy usage. At its mining peak, it was 127TWh per year. That is less than 0.08% of global world energy usage.

That's not even accounting for the amount of renewable energy sources used, and extracting energy to mine in ways that normally would not be accessible for power generation in the first place.

He doesn't say videocards are used for Bitcoin, he just says for mining. It's a well known fact the price of Bitcoin influences all altcoins, so it also influences videocard mining of those altcoins. So, yeah, Bitcoin is influencing videocards prices, albeit indirectly. Is it so hard to understand?
Yes. It influences graphics card prices. But remember when nVidia was hiking prices and nobody cared about crypto? Everyone was still praising nVidia.
You are all looking for a scapegoat, and you conveniently choose crypto.

Oh, the classic case of a FUD video calling facts FUD.

Fact is: even just a single Watt of energy is all wasted on Bitcoin, which solves nothing that we wouldn't have already a better solution for (and working for many, many years on to of that), only adds problems of its own.
Lol. Nice source. You guys are in a shitty pyramid scheme cult destroying the planet.
Completely ignorant comments. Just leaving this here for the ones that are actually interested.


LOL, just wow...
This is the deepest, most thought out and knowledgeable answer I've ever seen in my life 😏