The next Bitcoin halving is expected to take place in April 2024. This ensures that Bitcoin miners only earn half as much BTC when they mine a block. Every miner expects something different than what will happen.
Bitcoin ETFs could get the green light as early as Tuesday: Reuters
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Bitcoin miners in trouble?
Halving occurs every four years; The previous ones took place in 2012, 2016 and 2020. From the end of April, the reward for each block will no longer be 6.25 BTC, but 3.125 BTC. At current rates, that’s worth about $133,000. So you have to work twice as efficiently to achieve the same profit margins, otherwise the Bitcoin price must rise.
Cointelegraph interviewed top executives at several publicly traded miners. Haime Leverton, CEO of Hut8, believes that the halving will force miners to work more efficiently. Hut8 rolls out custom software at its own mining sites.
The company also hopes to complete the purchase of four power plants, which began in 2023. In contrast to more and more competitors, these are not hydroelectric power plants or solar parks, but natural gas power plants.
Taras Kulyk from mining infrastructure provider SunnySide Digital stated that the connection between the lower reward (in technical jargon, block rewards) and the financial problems of miners is very high. If transaction costs or price do not increase, less efficient miners will have to close.
Luxor’s lead researcher, Colin Harper, found much the same thing. Still, he doesn’t see how all miners could get into trouble. “There will always be miners with cheaper electricity than others. So as long as Bitcoin has value, someone will mine.”
The level of difficulty in mining is still extremely high
The Mining difficulty According to Harper, this would also be an important factor. If too many miners are having a hard time, the difficulty will be adjusted downward to make it easier to make profits. Previous halvings have shown that this sometimes only decreases as soon as the less efficient miners stop after the halving. However, the value is currently at a record level and rose enormously a few months ago. So there are many reasons why miners are having a hard time.
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