JPMorgan has noted in a research report that the primary expenditure in Bitcoin mining is electricity, which significantly influences total production costs. The report highlights that falling electricity prices, particularly in the United States, which is home to most Bitcoin mining firms and the leading contributor to the global hashrate, could reduce production costs significantly. The bank has stressed that the expense of electricity has been a critical factor during the recent bear market, and those with reduced production costs will be more viable in the long run. JPMorgan also anticipates sustainable energy sources will be a game-changer in the Bitcoin mining sector.
AI Sentiment: Positive
