Bloomberg: It Costs $4,000 to Mine a Bitcoin Worth $3,600

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Bloomberg provides the latest on Bitcoin:

The production-weighted cash cost to create one Bitcoin averaged around $4,060 globally in the fourth quarter, according to analysts with JPMorgan Chase & Co. With Bitcoin itself currently trading below $3,600, that doesn’t look like such a good deal.

The exception, apparently, is Chinese Bitcoin miners, who are able to make use of super-cheap hydro electricity and are still making a profit. Everyone else is just wasting time and power.

And what happens when Bitcoin falls below $1,000 and it’s unprofitable for everyone? Then the game is up, I suppose. In fact, the game is already up, since it doesn’t appear to me that there’s any kind of broad market for Bitcoin. If there’s anyone out there who’s consistently been able to sell Bitcoin in return for US$ or something similar, I’d like to hear from them.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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