JPMorgan has caused a stir amongst cryptocurrency miners, after last month’s report estimating Bitcoin’s ‘fair value’ at $2400. This assessment derives from the marginal cost of producing Bitcoin, but some disagree with Chinese miners’ production cost estimations.
The Price Of Dystopia
In the report, JPMorgan analysts claimed that the “average cash cost of a low-cost Chinese miner was around US$2,400 per bitcoin” in Q4 2018.
This, they suggested, is the break-even point; the marginal cost of producing one bitcoin. With bitcoin currently hovering around the $4000 mark, that represents a price drop of 40% before achieving ‘fair value’.
This actually seemed like progress from the previous day, when a JPMorgan analyst claimed bitcoin only had value in a dystopian environment. Unless the suggestion is that we are…