--- title: "Analysts: Bitcoin Mining Costs More Than Its Worth" description: "Analysts with JPMorgan Chase & Co. found that the cost of mining a single Bitcoin outweighed the actual value of the Bitcoin itself" date: "2019-01-26" modified: "2019-01-26" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/analysts-bitcoin-mining-costs-more-worth" categories: - "Bitcoin" - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "bitcoin" - "crypto mining" - "cryptocurrency mining" - "jpmorgan" --- # Analysts: Bitcoin Mining Costs More Than Its Worth ![Analysts with JPMorgan Chase & Co. found that the cost of mining a single Bitcoin outweighed the actual value of the Bitcoin itself]() *\Image: Paul Ratje/For The Washington Post via Getty Images\* ## Rough Patch Bitcoin is going through a rough patch. The value of Bitcoin dropped below $3,600 over the last week — a long fall from its average value last year of about $6,500. Analysts with JPMorgan Chase & Co. found that the cost of mining a single Bitcoin outweighed the actual value of the Bitcoin itself, [*Bloomberg* reports](). Analysts found the global average cost hovered around $4,060 globally in Q4 of 2018 — well above the current value. ## Bad News, Good News But that's not necessarily bad news for everybody. The majority of the costs involved in mining Bitcoin (on a larger scale) come from paying for the power required to run massive power-hungry computer rigs. Bitcoin miners in China have found ways to reduce those costs significantly by setting up shop in the vicincity of power generators and cutting deals with them. That means they pay only [roughly $2,400]() on average per Bitcoin according to JPMorgan analysts. Despite the rising relative costs, many Western Bitcoin mining productions have yet to call it quits. In fact the same analysts found that production shares of miners grew slightly in certain parts of the world. ## Rising From the Dead Earlier this week, [*Reuters* reported]() that JPMorgan analysts expected the value of Bitcoin to tank even further, down to as low as $1,260. Despite the pessimism, cryptocurrencies like Bitcoin tend to fluctuate significantly in value over short periods of time — the same quality that makes them so unpopular among banks. Could Bitcoin come back from the dead? That's the outcome many mining productions are willing to bet their money on. **READ MORE:** [Bitcoin Is Worth Less Than the Cost to Mine It, JPMorgan Says]() \[*Bloomberg*\] ***More on the value of Bitcoin: [The Energy Spent Mining $1 of Bitcoin Could Earn You $3.40 in Gold]()*** ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()