Hopes and Strategies In Play As Miners Prepare For Bitcoin Halving
Cryptonews
Bitcoin
4 years ago
1 QCP
- Some estimate that 40% of Bitcoin mining machines will be switched off in the first two weeks after the halving.
- Miners hope that some of their new methods will help to increase mining revenue.
The Bitcoin (BTC) halving is fast approaching, and already miners are swooping into action. Some are phasing out older mining hardware, while others are preparing to take equipment offline if the bitcoin price falls below certain thresholds after the halving.
But while the halving will obviously reduce mining rewards by 50% and a chunk of mining rigs will be turned off, miners hope to regain equilibrium in the event of any short-term volatility and bet on rising bitcoin prices.
Slower blocks and transactions for two weeks
As of writing, one bitcoin is worth around USD 7,170. Not bad, but it doesn’t sound like an awful lot when it is compared to an estimation by TradeBlock that the average cost of mining a single bitcoin stood at USD 6,851 in February and increased to USD 7,300 by the end of March.
At these prices, after the halving, it would cost miners almost USD 46,000 (again, on average) to earn the new BTC 6.25 block reward. This would leave successful (meaning, those we get the reward) miners with a loss of around USD 1,000 per block. As a reminder, there are around 144 blocks mined per day.
If hashrate and mining difficulty keep rising and miners swap their rigs with newer models (which obviously cost money to buy), things may end even worse than this after the halving. At the end of March, TradeBlock estimated that the gross cost of mining a single bitcoin might even reach USD 12,000 - USD 15,100.
More: https://cryptonews.com/exclusives/hopes-and-strategies-in-play-as-miners-prepare-for-bitcoin-h-6331.htm
- Miners hope that some of their new methods will help to increase mining revenue.
The Bitcoin (BTC) halving is fast approaching, and already miners are swooping into action. Some are phasing out older mining hardware, while others are preparing to take equipment offline if the bitcoin price falls below certain thresholds after the halving.
But while the halving will obviously reduce mining rewards by 50% and a chunk of mining rigs will be turned off, miners hope to regain equilibrium in the event of any short-term volatility and bet on rising bitcoin prices.
Slower blocks and transactions for two weeks
As of writing, one bitcoin is worth around USD 7,170. Not bad, but it doesn’t sound like an awful lot when it is compared to an estimation by TradeBlock that the average cost of mining a single bitcoin stood at USD 6,851 in February and increased to USD 7,300 by the end of March.
At these prices, after the halving, it would cost miners almost USD 46,000 (again, on average) to earn the new BTC 6.25 block reward. This would leave successful (meaning, those we get the reward) miners with a loss of around USD 1,000 per block. As a reminder, there are around 144 blocks mined per day.
If hashrate and mining difficulty keep rising and miners swap their rigs with newer models (which obviously cost money to buy), things may end even worse than this after the halving. At the end of March, TradeBlock estimated that the gross cost of mining a single bitcoin might even reach USD 12,000 - USD 15,100.
More: https://cryptonews.com/exclusives/hopes-and-strategies-in-play-as-miners-prepare-for-bitcoin-h-6331.htm
- Bitcoin price analysis
- MIners
- BTC
- Volatility
- Bitcoin halving
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