.jpmorgan says the next $BTC halving event, scheduled for the second quarter of next year, could be a stress test for miners. willcanny99 reports.
JPMorgan says miners with lower electricity costs will find it easier to survive, while miners with higher power costs may struggle after halving occurs.
The bank estimates that a 1 cent per kilowatt hour change in the electricity cost could cause a $4,300 change in the bitcoin production cost. After halving, this sensitivity would double to $8,600, thereby “increasing the vulnerability of higher cost producers.” The steep rise in the hashrate implies increasing competition among bitcoin miners with more mining rigs being deployed, the note said.
It is unlikely the hashrate will continue to rise at the same pace following the halving event “without any sustained rise in the bitcoin price above its production cost or a large increase in transaction fees that could offset the reduction in issuance rewards,” the report added.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Litecoin (LTC) Smashes Historic Milestone Ahead of Halving EventLitecoin (LTC) hits unprecedented high in transactions as halving looms
Read more »
Bitcoin Price Outlook for July – Markets and Prices Bitcoin NewsTwo-weeks into July and bitcoin has risen to a fourteen-month high, as cryptocurrency markets reacted to the Ripple labs ruling.
Read more »
Europe Expects Its First Bitcoin ETF This Month, Report – Bitcoin NewsEurope’s first bitcoin exchange-traded fund (ETF) is set to launch in July after a 12-month delay caused by the crypto winter.
Read more »
Bitcoin ETFs Can Boost 'Overall Reputation of Certain Cryptocurrencies' — Brighty App Co-Founder – Interview Bitcoin NewsThe Brighty App CTO highlighted Blackrock CEO Larry Fink's profile and influence as one of the reasons why some are confident that the bitcoin ETF will be approved. cbdc britcoin digitalassets
Read more »
Weekly NFT Sales Fall 4.33%, Bitcoin Burials NFT Fetches $1.68 Million – Markets and Prices Bitcoin NewsThe past week recorded $148.55 million in NFT sales, marking a 4.33% drop from the previous week's figures.
Read more »
SEC Accepts Blackrock’s Bitcoin ETF Application – Bitcoin NewsThe U.S. Securities and Exchange Commission has accepted the application for bitcoin ETF filed by asset manager Blackrock.
Read more »