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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You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

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