JP Morgan perceives Chinese cost-effective mining operations as more profitable in crypto-space

The reputed investment bank, JPMorgan Chase & Co. has been giving us a mixed bag and at times, wavering opinions on crypto-space. We say this because, right from the Chief Mr. Jamie Dimon’s U-turn from his critic statement back in 2018, “cryptocurrency as a fraud, terming digital currencies as a novelty and worth nothing" to his confession after JP Morgan’s keenness of investment into blockchain and crypto-currencies.

JP Morgan Analysts, say that the value of crypto remains unproven. Now, claims that Bitcoin is not worth the cost to mine it and only the low-cost Chinese miner can be triumphant. 

To substantiate this stance, JPM’s analyst, Normand says Crypto has failed as a diversification hedge. However, it is understandable that the Chinese low-cost mining operations can mine a Bitcoin at around $2,400 per coin owing to the contracts with electricity generators, as per the Bloomberg sources. The one whose consent with such electricity producers can indeed be the beneficiaries of such low-cost BTC mining set-up.

BTCUSD (at Bitfinex) is trading at shy above $3,505 levels at press time, currently sensing bearish momentum. 

When the price of this pioneer cryptocurrency tumbled last year from the year highs of $8,506 levels to as low as $3,215 levels, the hash rate of bitcoin has been gradually mounting.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -107 levels (which is bearish), while hourly USD spot index was at -112 (bearish) while articulating (at 05:30 GMT).

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