JPMorgan lowers Bitcoin mining cost estimate to $18,000

Following a recent revision of the Cambridge Bitcoin Electricity Consumption Index methodology, JPMorgan lowered its Bitcoin production cost estimate. Using the new method, the current cost of producing bitcoins drops to around $18,000, compared to $21,000 using the old method. The Cambridge Center for Alternative Finance last week revised the CBECI methodology to improve the accuracy and reliability of the index, which tracks and estimates the Bitcoin network’s electricity consumption. The new CBECI methodology believes that not all mining rigs that contribute to Bitcoin’s hash rate should be treated equally. Because in reality, miners often upgrade to newer, more efficient equipment, or mix various machines with varying operating efficiencies.