Bitcoin Mining Economics Continued to Improve in December, JPMorgan Says

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What to know:

  • The hashprice rose 5% this month as bitcoin mining economics improved, the report said.
  • The combined hashrate of the miners in the bank’s coverage now accounts for about 29% of the global network.
  • The aggregate market cap of the miners the bank tracks fell $1.5 billion in the first two weeks of the month.

As a seasoned crypto investor with over a decade of experience under my belt, I must say that the recent improvement in Bitcoin mining economics is a positive development for the industry. The 5% increase in hashprice this month, as reported by JPMorgan, is a clear indication that the fundamentals are strengthening.

This month, the economic aspects of Bitcoin (BTC) mining showed improvement, as the hashprice – a metric indicating daily profitability – increased by approximately 5% compared to the end of November, according to a research report released by JPMorgan on Monday.

According to the report, the price of the hash increased because the surge in the most prominent cryptocurrency exceeded the growth in the mining competition within the network, which the hashrate represents. The hashrate acts as an indicator for the level of competition in the industry and the complexity of mining.

Over the past month, the network’s hash rate has risen by 6%, averaging approximately 773 billion hashes every second, as observed by the bank.

Over the first fortnight of December, miners received roughly $57,300 as daily block reward income for each hashrate (EH/s), according to analysts Reginald Smith and Charles Pearce. They further stated that this is the highest level seen in the past seven months, yet it remains approximately 40% lower than the pre-halving earnings.

Over the course of the year, the combined hashrate of the fourteen U.S.-based miners monitored by the bank has grown by approximately 94%, reaching 222 exahash per second (EH/s). This now represents roughly 29% of the entire global Bitcoin mining network, according to the bank’s statement.

The combined value (market capitalization) of the cryptocurrency miners monitored by the bank decreased by 4% or approximately $1.5 billion. After the U.S. presidential election, it had surged over 50%.

The bank approximates that U.S.-listed miners are presently valued at roughly twice the expected return from their respective shares in the four-year block reward potential.

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2024-12-16 16:42