Bitcoin Halving: Only The Most Efficient Miners Will Survive

Bitcoin halving is getting closer, and it’s been revealed that only the most efficient miners are the ones who are going to survive. Check out the latest reports below.

Coindesk reported that the BTC mining hashrate, a measure of computing power on the network, will likely decline dramatically a year from now, once rewards are halved.

“Roughly every four years, the reward for successfully mining a Bitcoin block is cut in half. This event, known as the halving, reduces inflationary pressure on Bitcoin. Currently, rewards are 6.25 BTC per block ($170,000) and in April 2024, they will be reduced to 3.125 BTC per block ($85,000),” the online publication writes.

Currently, publicly listed miners mine at a cost of $10,000-$15,000 per bitcoin, said Wolfie Zhao, head of research at mining consultancy Blocksbridge.

According to the same notes, once the halving happens, these costs will double, bringing miners’ breakeven point to $20,000-$30,000.

At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $25,749.

Crypto analytics platform Glassnode stated not too long ago that the regional distribution of Bitcoin (BTC) is seeing notable transformation amid changing investor behaviors.

The firm made sure to highlight the fact that the dominance of US entities in the Bitcoin market, which peaked between the years 2020 and 2021, is seeing a significant decline since around the time the price of BTC saw a massive drop last year.

“A clear divergence is visible in the year-over-year BTC supply change based on geographical regions. The extreme dominance of US entities in 2020-21 has clearly reversed, with US supply dominance falling by 11% since mid-2022.”

According to Glassnode, the BTC supply dominance reversed as Asian traders became more invested in the Bitcoin market, as per the online publication the Daily Hodl. Stay tuned for more news from the crypto space.