Bitcoin

April

James

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/impending-bitcoin-halving-raises-concerns-over-mining-costs/" data-wpel-link="internal">Impending Bitcoin Halving Raises Concerns Over Mining Costs</a><br></p>
<p style="text-align: justify">As the eagerly anticipated <a href="https://en.coin-turk.com/bitcoin-price-could-cross-11250-with-these-3-factors/" data-wpel-link="internal">Bitcoin</a> halving event in April approaches, a recent report by CoinShares is heightening concerns about its potential impact on mining costs. The report suggests that the average cost of mining a single Bitcoin could astonishingly rise to $37,856, posing a serious challenge for miners if the price of Bitcoin falls below the $40,000 threshold.</p> 
<h2 style="text-align: justify" id="bitcoin-mining-landscape-growth-amid-profitability-concerns">Bitcoin Mining Landscape: Growth Amid Profitability Concerns</h2> 
<p style="text-align: justify">Despite a significant 104% increase in hash power in 2023, the Bitcoin mining network is currently facing an imminent profitability crisis. CoinShares’ analysis predicts that the cost of producing one Bitcoin will rise to $37,856 after the upcoming halving event. This projection highlights the increasing <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude">financial</a> pressure on miners, especially those with high operational expenses.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-307592 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/01/having-btc-cointurk.png" alt="" width="2160" height="1080"></p> 
<p style="text-align: justify">James Butterfill, the author of the report, stated, “In this research paper, we estimated that for the third quarter of 2023, the production cost per Bitcoin would be approximately $16,800 and $25,000, with the weighted average cash cost being around $27,900 and $37,800. After the halving event expected in April 2024, these costs are likely to rise to $27,900 and $37,800 respectively.”</p> 
<h2 style="text-align: justify" id="identifying-resilient-miners-riot-blockchain-terawulf-and-cleanspark">Identifying Resilient Miners: Riot Blockchain, TeraWulf, and Cleanspark</h2> 
<p style="text-align: justify">Amidst these concerns, the report identifies some miners as being better positioned to weather the storm. Riot Blockchain stands out due to its efficient cost structure and long-term strategy. Other miners like TeraWulf and Cleanspark are also expected to perform well by focusing on operational efficiency and lower overhead costs.</p> 
<p style="text-align: justify">However, the broader mining community may need to make significant adjustments in Selling, General, and Administrative Expenses (SG&amp;A) to maintain profitability post-halving. Failure to do so could lead to operational losses, forcing miners to sell their Bitcoin holdings or seek additional capital.</p> 
<h2 style="text-align: justify" id="surviving-amidst-challenges-efficiency-improvements-in-the-mining-network">Surviving Amidst Challenges: Efficiency Improvements in the Mining Network</h2> 
<p style="text-align: justify">While acknowledging the upcoming challenges, the report also points to ongoing efficiency improvements within the mining network. The current average efficiency of the network is at 34W/T, showing a positive trend. Analysts believe that a concerted effort could potentially reduce the mining ecosystem’s efficiency to as low as 10W/T by mid-2026.</p> 
<p style="text-align: justify">Despite the looming challenges, historical trends indicate that Bitcoin’s halving event is generally perceived as a bullish signal. Crypto analysts predict that Bitcoin could reach $55,000 and potentially hit an all-time high following the halving.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/impending-bitcoin-halving-raises-concerns-over-mining-costs/" data-wpel-link="internal">Impending Bitcoin Halving Raises Concerns Over Mining Costs</a></h5>

Impending Bitcoin Halving Raises Concerns Over Mining Costs

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