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The Halving of Bitcoin: A Revolutionary Event for Miners. CEO of CryptoQuant, Ki Young Ju, reveals that post-halving, the cost of Bitcoin mining doubles, with the average expense projected to soar beyond $80,000. 📈 🔍 Every 210,000 blocks, Bitcoin undergoes a halving, cutting miner rewards in half. This affects not just the price of Bitcoin but also drastically changes the behavior of miners, who now have to double their costs to earn the same amount of BTC. 💡 Despite reservations, past data indicates that the price of Bitcoin has increased following each halving. 📈 After the 2012 halving, it skyrocketed by 9,000%, followed by 4,200% after the 2016 halving, and 683% post-2020 halving. ⛏️ Miners face challenges post-halving as they navigate a phase where BTC prices dip below mining profitability. It's a rollercoaster ride marked by uncertainty, rig sell-offs, and the plight of small miners. 💡 The key takeaway? The Bitcoin halving event is a pivotal moment for miners, signaling both challenges and opportunities in the ever-evolving crypto landscape. 💲 Even if the price of Bitcoin goes up and down around $70,000, however, for the Bitcoin Miner Probability, Bitcoin should have to sit at $80,000. #BitcoinHalving #bitcoin #halving #btc

How does the Bitcoin halving impact both miners and HODLers? Imagine, a miner with a fixed income (block reward) and expenses (electricity, hardware, etc.). After the halving, income decreases, but expenses remain the same. To stay profitable, miners might need to reduce costs by using more efficient hardware or finding cheaper electricity. For example, a miner before the halving is receiving a reward of $200 for successfully validating a block. Let's assume his mining costs are $100 per block. (electricity, hardware maintenance etc.) Before halving: Block reward = $200 Mining cost = $100 Profit = Block reward - Mining cost = $200 - $100 = $100 (profit) After halving: The block reward gets cut in half, so now the reward is $100. Mining cost likely remains around $100 assuming no major changes in electricity costs or hardware efficiency). Profit = Block reward - Mining cost = $100 -$100 = $0 (no profit) The miner's profit completely disappears after the halving! This example highlights how a reduced reward can significantly decrease the profits. In the long run, hodlers are likely to benefit more from the halving, because, as new block rewards decrease, the total supply of Bitcoin entering the market slows down, making each Bitcoin more scarce. It's miners who play a vital role in the Bitcoin network, but hodlers are likely to benefit more from the halving in the long run due to the reduced supply and potential price increase. #Bitcoin #BitcoinHalving2024

Ever wondered how much it costs to mine a single Bitcoin? It's well known that Bitcoin mining is a highly competitive industry with slim margins. But what is the global average electricity cost of mining one full Bitcoin? Here is an estimate based on current data: Assumptions: Global Bitcoin mining hashrate: ~550 EH/s Hardware ASIC efficiency: ~22 J/TH Average mining electricity costs: ~$0.06/kWh Breakdown: - Total Power Consumption: 550,000,000 TH/s×22 J/TH=12.1 GW - Energy Consumption per Block (10 minutes): 12.1 GW×600 s=7,260GJ - Convert to kWh: 7,260 GJ÷3.6=2,016,667 kWh - Electricity Cost per Block: 2,016,667 kWh×$0.06/kWh = $121,000 Current Bitcoin Block Reward: - Block reward: 3.125 BTC per block - Transaction fees (estimated): ~5% of the block reward = 0.15625 BTC - Total BTC per block: 3.125 + 0.15625 = 3.28125 BTC Electricity cost per Bitcoin: $121,000/3.28125 ~$36 876 Therefore, on average, it currently costs about $36 876 in electricity to mine one full Bitcoin. This cost varies across miners depending on their mining hardware efficiency and actual electricity costs per kWh. What are your thoughts on the sustainability of Bitcoin mining given these costs?

Bitcoin mining profitability is influenced by several factors, including hash rate, mining difficulty, block rewards, and electricity costs. As we approach another Bitcoin halving, where the block reward will be reduced by half, it's crucial to understand how these changes can impact your mining operations. Currently, with Bitcoin's price having dropped to $54K, miners need to adapt to these new economic conditions to remain profitable. Here are some strategies to navigate this challenging period: 1. Optimize Efficiency: Ensure that your mining equipment is running at maximum efficiency. This includes regular maintenance, optimizing settings, and considering upgrades to more energy-efficient hardware 2. Reduce Operational Costs: Lower your operational costs wherever possible. Negotiate better electricity rates, explore renewable energy options, and reduce any unnecessary expenditures. This can help maintain profitability even when the price of Bitcoin fluctuates. 3. Diversify Your Portfolio: Consider mining other cryptocurrencies or diversifying your investments in the crypto space to spread risk and increase potential returns. Diversification can help mitigate the impact of price volatility in any single asset. 4. Stay Informed: Keep up with the latest news and trends in the Bitcoin mining industry. Understanding market dynamics and upcoming changes can help you make better strategic decisions. This includes monitoring regulatory developments, technological advancements, and market sentiment. 5. Plan for the Future: The market is cyclical, and while prices may be down now, they can rise again. Position yourself to take advantage of future price increases by maintaining efficient operations and staying adaptable. Having a long-term strategy can help you weather short-term downturns. By understanding the economics of Bitcoin mining and implementing these strategies, miners can navigate the challenges of halving and price fluctuations to continue achieving success in the crypto mining space. #BitcoinMining #CryptoEconomics #BTC #MiningStrategies #CryptoMarket #Blockchain

enterprises, banks and entire countries have slowly begun #disclosing their investing of absolute #billions worth in capital, as their 5 year investment target projects a $250k to $500k growth in #bitcoin. the #media has been offering a helping hand to assist in raising this awareness, which has begun #accelerating the emptying of #centralizedexchange reserves around the world. as the #miners are becoming increasingly more unable to meet with this global #demand, it has been creating the necessary conditions for a massive #supplyshock. the bitcoin #halving upped the mining difficulty, further #reducing the limit on bitcoin #units which can be produced every day. just imagine what could unfold once you shut down an entire country’s #miningoperation.

Bitcoin mining earnings plunge to new post-halving yearly low. The earnings from Bitcoin mining experienced a dramatic drop in May, reaching a new post-halving yearly low. This decline followed the latest Bitcoin halving event on April 20, which reduced mining rewards from 6.25 BTC to 3.125 BTC, as part of the cryptocurrency’s design to limit its total issuance to 21 million over the years. Despite the initial excitement and the launch of Bitcoin Runes buoying miners’ earnings temporarily, total revenue from block rewards and transaction fees plummeted to $26.3 million on May 1. This represents a stark contrast to the pre-halving average daily revenue of approximately $6 million, data from Blockchain.com indicates. #Secret3 #cryptonews #blockchain #crypto #bitcoin Read more: https://lnkd.in/dXFsrAKv

💡 Bitcoin Mining Revenues Hit Historic Low, Reports JPMorgan In a recent analysis, JPMorgan reveals that Bitcoin mining revenues have plummeted to historic lows. The dwindling earnings have raised significant concerns within the crypto mining community and beyond. 📉 Key Insights: 🔹 Bitcoin mining revenues are at their lowest levels in history. 🔹 Miners are facing unprecedented financial pressures. 🔹 The drop in revenue is being attributed to: 🚫 Increased competition in the mining space 🔋 Rising energy costs 📉 Stagnant Bitcoin price movements 🚀 What Does This Mean for the Future? 📊 Miners are being forced to innovate or exit the industry. 🌿 Sustainable and cost-effective energy sources are becoming a priority. 🤔 Market participants will closely watch how this impacts Bitcoin's overall network security and decentralization. The figures are stark, but they illuminate a critical turning point for crypto mining. How will the community adapt to these changes? Share your thoughts and experiences below! ⬇️ #Bitcoin #CryptoMining #Blockchain #BTC #CryptoEconomics Read More:

⚠️ Bitcoin Mining Profits Hit Record Low in August 📉 In August, Bitcoin mining profits plunged to record lows according to a recent report by JPMorgan analyst. A perfect storm of increased energy costs and elevated difficulty levels has squeezed miners like never before. Key insights: 🔵 Mining Profitability Struggles: As profitability dips, smaller and less efficient miners are feeling the pinch the most. This could lead to further consolidation within the Bitcoin mining sector. 🔵 Increased Difficulty Level: Bitcoin's mining difficulty has surged, making it harder for miners to validate transactions and earn rewards. 🔵 Rising Energy Costs: Energy prices have been escalating globally, adding financial strain on miners and reducing their margins. This has left many questioning the long-term sustainability of current mining operations. Could this drive innovation in energy-efficient mining solutions? Are you in the Bitcoin mining industry? How are you coping with these challenging conditions? Share your thoughts and strategies! #Bitcoin #BTC #CryptoMining #Blockchain #Cryptocurrency #DigitalAssets #MiningEfficiency Read More:

Bitcoin Mining Difficulty Crashes 5% To Lowest Level In 3 Months, What Happens Next? https://lnkd.in/dfzwvwtK #Bitcoin #News #Bitcoin #BitcoinMining #BitcoinminingDifficulty #BitcoinNews #bitcoinprice #BTC #BTCnews #BTCprice #btcusd #BTCUSDT #crypto #news #NewsBTC