He bitcoin-bull-market-glassnode/” rel=”nofollow”>bitcoin Halving It is scheduled to take place this week. Miner rewards will be halved, from 6.25 btc to 3.125. This event is expected to have far-reaching effects on the miners themselves as they will surely lose a significant portion bitcoin-miners-enjoy-2nd-highest-daily-revenue-ever/#:~:text=bitcoin%20Miners%20Just%20Raked%20In,to%20the%20all%2Dtime%20record.” rel=”nofollow”>amount of income once the halving occurs.
bitcoin miners could lose up to $10 billion in revenue
According to a Bloomberg bitcoin-halving-will-deal-a-10-billion-blow-to-crypto-miners?embedded-checkout=true” rel=”nofollow”>report, bitcoin miners could lose up to $10 billion a year following the bitcoin halving. This is because these miners, who currently earn 900 btc daily by validating transactions, would see their income drop to 450 btc once bitcoin-mining-costs-post-halving/” rel=”nofollow”>halving happens. However, it is worth noting that this projected revenue loss is based on bitcoin-price-suffers-sharp-decline/” rel=”nofollow”>The current price of bitcoin.
Therefore, this revenue loss can be cushioned if the price of bitcoin sees a significant increase after the halving. However, these miners will take into account that depending on the increase in the price of bitcoin is not sustainable, considering that they will also encounter crypto-firm-returns-27k-mining-rigs-to-pay-off-loan/” rel=”nofollow”>subsequent bear marketswhich would cause a drop in the price of the flagship cryptocurrency.
This is why miners like Marathon Digital and CleanSpark are reported to have invested in bitcoin-miners-move-old-equipment-overseas/” rel=”nofollow”>New equipment and they have tried to eliminate competition by buying out smaller rivals. Buying out the competition can reduce the number of miners competing for block rewards and cushion the decline in your daily income.
Bitcoinist too bitcoin-miners-on-the-defensive-analyst/#:~:text=Prominent%20Bitcoin%20mining%20operators%20are,proof%2Dof%2Dwork%20era.” rel=”nofollow”>previously reported that bitcoin miners were looking to diversify their operations in a bid to increase their revenue streams and earn additional income that could cushion the effects of the halving. The artificial intelligence (ai) sector is one such area where these miners are actively seeking opportunities, considering that the bitcoin mining infrastructure is well suited for certain ai operations.
btc miners face competition from tech giants
Bloomberg also reported that US bitcoin miners face competition from larger ones. amazon-responds-to-rumors-that-it-is-integrating-bitcoin-payments-on-its-platform/” rel=”nofollow”>technology companies in the world so that electricity bitcoin-mining-eats-up-2-of-us-electricity-study/” rel=”nofollow”>boost your operations. These technology giants, which are also large consumers of energy, seek as much energy as bitcoin miners to power their data centers.
The report further notes that electricity constraints in the US, coupled with high demand for electricity among miners and tech giants, have led to an increase in electricity rates. This evolution also makes it more difficult for bitcoin miners to carry out its operations without problems in the country.
technology/” rel=”nofollow”>technology companies They are said to have an advantage over them when purchasing power from utilities due to their constant revenue streams, unlike bitcoin miners whose success depends largely on the volatile price of Bitcon.
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btc bulls reclaim control | Source: BTCUSD on Tradingview.com
Featured image from Atlantic Council, chart from Tradingview.com
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