The Bitcoin halving will take place this week. Miner rewards will be halved from 6.25 BTC to 3.125. This event is expected to have far-reaching consequences for the miners themselves as they will undoubtedly suffer a significant loss amount of income as soon as the halving takes place.
Bitcoin miners could lose up to $10 billion in revenue
According to a Bloomberg reportBitcoin miners could lose up to $10 billion annually after the Bitcoin Halving. This is because these miners, who currently earn 900 BTC daily from validating transactions, would see their value decline in income up to 450 BTC once the halving happens. However, it’s worth noting that this expected revenue loss is based on this The current price of Bitcoin.
Therefore, this loss of income can be absorbed if the price of Bitcoin experiences a significant increase after the halving. However, these miners will keep in mind that relying on Bitcoin’s price increase is not sustainable as they will also have to deal with subsequent bear marketswhich would lead to a price drop for the flagship crypto.
That’s why miners like Marathon Digital and CleanSpark have reportedly invested in it new equipment and have tried to wipe out the competition by buying out their smaller rivals. Buying out the competition can reduce the number of miners competing for block rewards and offset the decline in their daily revenue.
Bitcoinist too Previously reported that Bitcoin miners were looking to diversify their operations in an effort to increase their revenue streams and earn additional income that could mitigate the effects of the halving. The artificial intelligence (AI) sector is one of those areas in which these miners are actively looking for opportunities, as Bitcoin mining infrastructure is well suited for certain AI operations.
BTC miners are facing competition from tech giants
Bloomberg also reported that US Bitcoin miners are facing competition from the largest technical companies in the world for electricity power over their activities. These tech giants, who also happen to be heavy energy consumers, are looking for as much energy as Bitcoin miners to power their data centers.
The report further noted that electricity restrictions in the US, in addition to high demand for electricity among miners and technology giants, have led to a rise in electricity rates. This development also makes it more difficult for Bitcoin miners to ensure their operations in the country run smoothly.
Technical companies They are said to have an edge over them in acquiring power from utilities due to their consistent revenue streams, unlike Bitcoin miners, whose success largely depends on Bitcon’s volatile price.
BTC bulls reclaim control | Source: BTCUSD on Tradingview.com
Featured image from Atlantic Council, chart from Tradingview.com
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