This week, the Bitcoin Halving will happen, reducing miner rewards from 6.25 Bitcoins to 3.125 Bitcoins. This occurrence could significantly impact miners financially, as they stand to lose a substantial portion of income post-halving.
Bitcoin Miners Could Lose Up To $10 Billion In Revenue
Based on a Bloomberg article, Bitcoin miners might experience an annual loss of approximately $10 billion after the Bitcoin Halving. Currently, these miners make 900 BTC each day by verifying transactions. However, following the halving, their earnings will decrease to 450 BTC per day. This estimated revenue decrease is calculated based on Bitcoin’s current value.
In simpler terms, if Bitcoin’s price jumps up substantially following the halving, it can help offset the revenue decrease for miners. However, they should keep in mind that relying solely on price increases isn’t reliable since there will be subsequent market downturns causing a drop in Bitcoin’s value.
Miners such as Marathon Digital and CleanSpark are reportedly investing in new equipment and attempting to eliminate competition by purchasing smaller competitors. Eliminating competition can decrease the number of miners vying for block rewards, thereby softening the blow to their daily earnings when rewards become less frequent.
Previously, Bitcoinist reported that some Bitcoin miners aimed to expand their businesses by exploring new revenue sources and investing in sectors like artificial intelligence (AI). Given the similarities between Bitcoin mining’s infrastructure and certain AI applications, this sector has become a promising area of interest for these miners.
BTC Miners Facing Competition From Tech Giants
According to Bloomberg’s report, US Bitcoin miners encounter competition from global tech giants for securing sufficient electricity for their mining activities. Coincidentally, these tech companies, known for their large energy consumption needs, aim to acquire the same amount of energy to run their data centers.
In addition, the report pointed out that both the United States’ electrical limitations and the significant electricity demands from mining companies and tech industries have caused electricity prices to skyrocket. This trend poses challenges for Bitcoin miners looking to efficiently carry out their operations within the country.
Tech firms reportedly hold an advantage when purchasing electricity from utilities compared to Bitcoin miners because of their stable income sources, whereas Bitcoin mining prosperity is heavily influenced by the unpredictable value of Bitcoin.
Read More
Sorry. No data so far.
2024-04-15 23:10