Is Your Bitcoin Mining Business at Risk? JPMorgan Reveals the Ultimate Survival Strategy – 258

There is a ton of competition within Bitcoin mining and it's important to Realize that according to JP Morgan only Bitcoin miners with low power costs and High sustainable energy mix Will Survive Electricity cost played a vital role in The past Year's bear Market as miners Struggled to stay in business the report Said Bitcoin miners with low electricity Costs and high sustainable energy mix Are the only ones likely to survive in a Progressively more competitive Environment JP Morgan said in a research Report Thursday the main cost in mining Is electricity which affects the overall Cost of bitcoin production the report Said adding that miners have been Looking for cheaper and sustainable Energy sources to protect their Profitability electricity prices have Been falling especially in the U.S where Most Bitcoin mining firms were based the Bank said noting that the US is the Largest Bitcoin hash rate contributor I Think right now something like four Peta Hashes in the US for reference and the Next closest right now is Russia which Has hit one pet a hash but Russia is Catching up very very quickly especially Hosts or in the current landscape of the Uh of the you know macro socioeconomic Policies and blah blah blah and yeah it Is what it is right they but it is kind

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Catching up very very quickly we see a Reversal going on in China we see Reversals going on in Brazil right now Too on a lot of their mining policies so Everybody's kind of starting to come Back to bitcoin and they're coming back Kind of On Cue which is really Interesting getting ready to start Stacking up I wouldn't be surprised if We started seeing the price of Asic Miners for Bitcoin in particular start To increase pretty steadily running up Until April And you may run out of time to actually Purchase these Miners And if you want Details on that once again I'll Shamelessly self seamlessly self-promote The the e-course because I Do cover some Of this Specifically the amount of increase in Pricing on some of these I mean even to The point to where last bull run you Know we saw s9s going up and tripling in Price Electricity prices have been falling Especially in the US like we covered Hash rate refers to the total combined Computational power used to mine and Process transactions on proof of work Blockchains such as Bitcoin lower Electricity costs should help contain The rise in Bitcoin production costs in The current phase of rising hash rate Analyst led by Nicholas oh look all

Right Anybody that can pronounce that is just Awesome I suppose he wrote the cost of Power has played a vital role in the Bear Market of the past year as minor Struggled to survive the bank said the Average price of electricity for Bitcoin Miners globally is about 5 cents per Kilowatt hour however some large mining Firms have been able to pay as little as 3 cents per kilowatt hour the note said Lower electricity costs help the large Bitcoin miners keep Bitcoin production Costs low and maintain their Profitability even in the current highly Competitive environment where the hash Rate has risen steeply making new record Highs end quote the note added Vulnerable miners including core Scientific Argo blockchain and Iris Energy have struggled to survive due to A combination of falling Bitcoin prices Rising debt servicing costs and Rising Electricity cost speaking of debt a lot Of these miners the biggest mistake they Made was taking out loans against their Equipment during the bull run when the Equipment bomb costs to manufacturers Just Not Anywhere near what the miners were being Listed for and if you were going to or If I was going to take out a loan to Purchase miners or on my miners the best Time would be like during a bear Market

When the price is low and you can easily Pay those off once those miners regain Their value that's where a lot of these Miners failed Um it wasn't even that you could I mean If you had the equipment right and you Had a decent power cost I mean you you Should have been fine the problem was Really that they added on this debt that Was just making things insurmountable at The end of the day miners with high Electricity costs have been facing Losses due to faulting bitcoin prices Over the past year but if you owned your Equipment outright once again this is Why I never recommend like taking out Loans in the first place Etc if these Machines were owned outright worst case You can power them off and save that Power cost and move out the problem of Course is if you have a purchase power Agreement that's requiring you to Utilize a certain amount of power and That price is fluctuating which would be A terrible agreement in the first place Typically if you're in that type of Situation you're going to have some sort Of lock-on price and they're going to Have some sort of lock on how much power You have to utilize JPMorgan says that over time the Bitcoin Mining industry will consolidate and Become more competitive because only Miners with low production costs will be

Able to survive miners have also been Trying to diversify their power mix with Renewable sources in order to become More environmentally friendly the report Said of course renewable resources on Like a an energy intensive process can Be quite difficult you know a lot of People talk about for home miners trying To go solar Etc the price really hasn't Come down to make that viable in my Humble opinion a lot of the Diversification of larger miners are you Know Reef refurbishing things like old Like hydro plants and so on but that Kind of capital really pushes a lot of People out thanks for checking out this Clip from the crypto mining show you can Check out the full episode here or more Crypto content down here also I'd like You to check out my locals page at son Of a tech.locals.com where you can Become a member for free or choose to be A five dollar a month supporter that Unlocks additional content

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