Bitcoin Halving Expected to Cut Miner Revenue by 50%
Experts predict that the upcoming fourth Bitcoin (BTC) halving, scheduled for April 23, 2024, will result in a significant reduction in miners’ revenue. The value issued to Bitcoin miners through newly minted supply is currently at $1 billion per month, but after the halving, it is estimated to drop to around $500 million per month, a level last seen during the FTX crash in late 2022.
The difficulty of Bitcoin mining has recently increased by 3.55%, reaching its maximum at 64.68 T on Nov. 13, 2023. The average hash rate since the previous value change was 479 EH/s, indicating a higher level of mining activity than ever before.
JPMorgan analysts also anticipate a potential 20% decrease in the Bitcoin hash rate post-halving, suggesting that older mining hardware may be phased out. The halving will reduce the block reward in the Bitcoin network from 6.25 BTC to 3.125 BTC, as per Satoshi Nakamoto’s design for controlled asset supply over time.
Hot Take: Preparing for the Impact of the Halving
As a crypto enthusiast, it’s crucial to stay informed about the potential effects of the upcoming Bitcoin halving on miner revenue and network dynamics. Understanding these changes can help you navigate the evolving landscape of cryptocurrency mining and investment strategies in response to shifting market conditions.
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