J.P. Morgan recently released a statement regarding the state of affairs regarding bitcoin mining. While its common knowledge home and smaller mining farms have been unviable as business operations for a number of years, J.P. Morgan stated its now more expensive to mining a bitcoin than its actual value.
“The drop in BTC prices from approx. $6,500 during October to underneath $4,000 now has more and more pushed margins further negative for just about every region except low-cost Chinese crypto miners,” analysts revealed.
There have been a number of factors behind the recent increase in production costs as the price of energy increases on a global scale. With only a handful of countries such as China and other industrial nations providing a source of cheap energy, even large scale miners have been hit but the removal of subsidizations in countries such as Norway which have removed incentives due to contributions made to greenhouse gases due to consumption.
Exchanges and trading however have been pointed at as viable forms of engaging in crypto trading without the considerable investment mining equipment requires.
As reported previously on BTC.NG, J.P. Morgan became the first ever US bank to launch its very own cryptocurrency. This has further shed doubt over the accuracy of research conducted by the banking giant with regards to the viability of mining activities on a global scale with Chinese miners and large scale firms remaining afloat. Some point to the fact the firm is aiming to pump momentum behind its own cryptocoin. Furthermore even the likes of Nouriel Roubini a vocal opponent of the likes of Bitcoin and other cryptocoins stated he would steer clear of J.P. Morgan’s new cryptocoin. Denouncing it as a cryptocoin he went onto state the coin being private and centralized within the J.P. Morgan banking infrastructure removed much of the credibility of cryptocoins which are decentralized and decommissioned like bitcoin.
Disclaimer : The author has shares in Bitcoin and other cryptocoins at the time of writing.