Bitcoin Miners To Lose A Whopping $10 Billion Following The Halving – Here’s Why
April 15 2024 - 4:00PM
NEWSBTC
The Bitcoin Halving is set to take place this week. Miners’ rewards
will be cut in half from 6.25 BTC to 3.125. This event is expected
to have far-reaching effects on the miners themselves, as they are
bound to lose a significant amount of revenue once the halving
occurs. Bitcoin Miners Could Lose Up To $10 Billion In Revenue
According to a Bloomberg report, Bitcoin miners could lose up to
$10 billion annually following the Bitcoin Halving. This is because
these miners, who currently earn 900 BTC daily from validating
transactions, would see their income drop to 450 BTC once the
halving happens. However, it is worth noting that this projected
revenue loss is based on Bitcoin’s current price. Related Reading:
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Panicking Therefore, this revenue loss can be cushioned if
Bitcoin’s price experiences a significant surge after the halving.
These miners will, however, have in mind that reliance on Bitcoin’s
price rise isn’t sustainable, considering that they will also
encounter subsequent bear markets, which would lead to a price
decline for the flagship crypto. That is why miners like
Marathon Digital and CleanSpark are reported to have invested in
new equipment and have sought to weed out the competition by buying
out their smaller rivals. Buying out the competition can reduce the
number of miners competing for block rewards and cushion the drop
in their daily revenue. Bitcoinist also previously reported
that Bitcoin miners were looking to diversify their operations in a
bid to boost their revenue streams and earn additional income that
could cushion the effects of the halving. The artificial
intelligence (AI) sector is one of those areas in which these
miners are actively seeking opportunities, considering that Bitcoin
mining’s infrastructure is well suited for certain AI
operations. BTC Miners Facing Competition From Tech Giants
Bloomberg also reported that US Bitcoin miners are facing
competition from the largest tech companies in the world for
electricity to power their operations. These tech giants, who also
happen to be high-energy consumers, are looking for as much energy
as Bitcoin miners to power their data centers. Related
Reading: Market Expert Reveals Why Solana Price Is Poised To Go
Higher The report further noted that electricity constraints in the
US, alongside the high demand for electricity among miners and tech
giants, have led to a surge in electricity rates. This development
is also making it harder for Bitcoin miners to run their operations
smoothly in the country. Tech companies are said to have an
edge over them when acquiring power from utility companies due to
their consistent revenue streams, unlike Bitcoin miners, whose
success largely depends on Bitcon’s volatile price. BTC
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