- Bitcoin mining is becoming more expensive, according to JPMorgan.
- That’s because miners are “currently in a hash rate arms race.”
Bitcoin miners are in an arms race and it is driving the cost of minting new bitcoin to all-time highs.
That’s according to a big report on cryptocurrency out Friday by financial giant JPMorgan.
Miners are the folks who unleash new bitcoin into the universe by running computationally intensive algorithms on systems called rigs. The miners pumping out the most computing power — or “hash rate,” referring to how many cryptographic calculations the machines can do per second — have the best chance of earning a new bitcoin. As such, miners are building more and more rigs to one-up their competition.
“The industry is currently in a hash rate arms race, as the current bitcoin price is incentivizing the addition of more and more mining capacity,” the report…