The upcoming Bitcoin halving event could put miners to the test with lower rewards and higher costs, according to JPMorgan.
The upcoming Bitcoin halving could put miners to the test with lower rewards and higher costs, according to JPMorgan analysts.
Miners with lower electricity costs will fare better after the halving, while those with higher costs may struggle, the analysts say.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.The upcoming Bitcoin halving event will form a crucial test for miners as they navigate reduced rewards and increased production costs, according to JPMorgan.
"Miners with lower electricity costs would find it easier to cope after the halving event, while miners with higher electricity costs could struggle post halving event," JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a report on Thursday. Put simply, the halving event will determine miners' ability to adapt and remain profitable in a changing environment.
, or the total computational power to mine the cryptocurrency, is increasing, according to the analysts. Post the halving event, however, the Bitcoin hash rate may not continue to rise at the same pace 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 analysts said.poses an additional challenge for bitcoin miners' revenues," the analysts concluded.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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.
Binance US Reacts to Bitcoin Cash FUD, Assures Users Their Funds Are Safe – Exchanges Bitcoin NewsBinance’s U.S. platform has rejected rumors regarding its bitcoin cash (BCH) reserves, reassuring customers that their funds are safe.
Read more »
Bitcoin, Ethereum Technical Analysis: Bitcoin Pushes Towards $31,000 as US Inflation Is Expected to Fall – Market Updates Bitcoin NewsBitcoin moved towards $31,000 on Wednesday, ahead of June's inflation report from the United States. The CPI is expected to fall to 3.1%
Read more »
Bitcoin, Ethereum Technical Analysis: Bitcoin Consolidates Below $31,000, as Traders Digest Recent Economic Data – Market Updates Bitcoin NewsBitcoin retreated from recent gains on Thursday, as traders were unable to sustain a breakout of a key resistance level.
Read more »
JPMorgan Chase stock dips after it gets downgraded to neutral at CitiJPMorgan Chase & Co. stock is down 0.4% in premarket trades on Wednesday after Citi analyst Keith Horowitz downgraded the megabank’s stock to neutral from...
Read more »
Feds charge Frank exec Olivier Amar with defrauding JPMorgan in $175M dealFrank founder Charlie Javice was arrested in April and later pleaded not guilty to the same four counts.
Read more »
JPMorgan downgraded to neutral by Citi on premium valuationJPMorgan Chase was downgraded to neutral from buy at Citi ahead of second-quarter earnings for the banking sector. Citi analysts led by Keith Horowitz said...
Read more »