Bitcoin

when

Billion

<p>The <a href="https://bitcoinist.com/bitcoin-bull-market-glassnode/" rel="nofollow">Bitcoin Halving</a> is set to take place this week. Miners’ rewards will be cut in half from 6.25 BTC to 3.125. This event is expected to have far-reaching effects on the miners themselves, as they are bound to lose a significant <a href="https://bitcoinist.com/bitcoin-miners-enjoy-2nd-highest-daily-revenue-ever/#:~:text=Bitcoin%20Miners%20Just%20Raked%20In,to%20the%20all%2Dtime%20record." rel="nofollow">amount of revenue</a> once the halving occurs.</p> 
<h2 id="bitcoin-miners-could-lose-up-to-10-billion-in-revenue">Bitcoin Miners Could Lose Up To $10 Billion In Revenue</h2> 
<p>According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-04-14/bitcoin-halving-will-deal-a-10-billion-blow-to-crypto-miners?embedded-checkout=true" rel="nofollow">report</a>, Bitcoin miners could lose up to $10 billion annually following the Bitcoin Halving. This is because these miners, who currently earn 900 BTC daily from validating transactions, would see their <a href="https://www.newsbtc.com/news/bitcoin-miner-revenue-sees-massive-6-month-crash-whats-going-on/">income drop</a> to 450 BTC once the <a href="https://bitcoinist.com/by-numbers-how-bitcoin-mining-costs-post-halving/" rel="nofollow">halving happens</a>. However, it is worth noting that this projected revenue loss is based on <a href="https://bitcoinist.com/bitcoin-price-suffers-sharp-decline/" rel="nofollow">Bitcoin’s current price</a>.</p> 
<p>Therefore, this revenue loss can be cushioned if Bitcoin’s price experiences a significant surge after the halving. These miners will, however, have in mind that reliance on Bitcoin’s price rise isn’t sustainable, considering that they will also encounter <a href="https://bitcoinist.com/crypto-firm-returns-27k-mining-rigs-to-pay-off-loan/" rel="nofollow">subsequent bear markets</a>, which would lead to a price decline for the flagship crypto.&nbsp;</p> 
<p>That is why miners like Marathon Digital and CleanSpark are reported to have invested in <a href="https://bitcoinist.com/us-bitcoin-miners-move-old-equipment-overseas/" rel="nofollow">new equipment</a> and have sought to weed out the competition by buying out their smaller rivals. Buying out the competition can reduce the number of miners competing for block rewards and cushion the drop in their daily revenue.&nbsp;</p> 
<p>Bitcoinist also <a href="https://bitcoinist.com/bitcoin-miners-on-the-defensive-analyst/#:~:text=Prominent%20Bitcoin%20mining%20operators%20are,proof%2Dof%2Dwork%20era." rel="nofollow">previously reported</a> that Bitcoin miners were looking to diversify their operations in a bid to boost their revenue streams and earn additional income that could cushion the effects of the halving. The artificial intelligence (AI) sector is one of those areas in which these miners are actively seeking opportunities, considering that Bitcoin mining’s infrastructure is well suited for certain AI operations.&nbsp;</p> 
<h2 id="btc-miners-facing-competition-from-tech-giants">BTC Miners Facing Competition From Tech Giants</h2> 
<p>Bloomberg also reported that US Bitcoin miners are facing competition from the largest <a href="https://bitcoinist.com/amazon-responds-to-rumors-that-it-is-integrating-bitcoin-payments-on-its-platform/" rel="nofollow">tech companies</a> in the world for electricity to <a href="https://bitcoinist.com/bitcoin-mining-eats-up-2-of-us-electricity-study/" rel="nofollow">power their operations</a>. These tech giants, who also happen to be high-energy consumers, are looking for as much energy as Bitcoin miners to power their data centers.&nbsp;</p> 
<p>The report further noted that electricity constraints in the US, alongside the high demand for electricity among miners and tech giants, have led to a surge in electricity rates. This development is also making it harder for <a href="https://www.newsbtc.com/news/bitcoin-miner-revenue-sees-massive-6-month-crash-whats-going-on/">Bitcoin miners</a> to run their operations smoothly in the country.&nbsp;</p> 
<p><a href="https://bitcoinist.com/companies-betting-big-on-blockchain-technology/" rel="nofollow">Tech companies</a> are said to have an edge over them when acquiring power from utility companies due to their consistent revenue streams, unlike Bitcoin miners, whose success largely depends on Bitcon’s volatile price.&nbsp;&nbsp;</p> 
<p><img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/okdKZ2Q5/" alt="Bitcoin price chart from Tradingview.com" width="3286" height="1530"></p>

Bitcoin Miners To Lose A Whopping $10 Billion Following The Halving – Here’s Why

Зміст

NewsBTC

Інші статті, опубліковані 15 квіт. 2024 р.

Core Scientific Registers 10.8M Shares Pre-Bitcoin Halving

Uniswap Vs SEC: The Standing Of Uniswap Lawsuit In Crypto Space

BlockDAG Dominates with $17M Presale and 20,000x ROI, Outshining Fantom & Avalanche

History of Crypto: NFT mania and digital ownership

Nebraska Man Accused of $1 Million Crypto Mining Fraud

FET jumps 11%, RNDR soars 17% while NEAR lags: AI for the win?

Приєднуйтеся до нашої безкоштовної розсилки для отримання щоденних оновлень щодо крипто!