The Bitcoin Halving: Good for Us, Bad for Miners.
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Scorching take: the Bitcoin halving isn’t essentially good for everybody.
Really, there are some main potential downsides for miners.
Let’s dive in, we could?
This upcoming April would be the subsequent halving cycle for Bitcoin — aka BTC mining rewards get minimize in half.
More often than not (at the very least each earlier time) the value of Bitcoin shoots up for a bit, so people expect BTC to do the identical this time round.
However! A miners major job is to unravel advanced cryptographic puzzles time and time once more.
Cool.
However to try this, miners dissipate a TON of electrical energy…a lot electrical energy that a variety of mining teams are discovering it laborious to stay worthwhile at present electrical energy charges with as we speak’s block reward costs.
Beginning to see the larger image?
When Bitcoin halves, miners will probably be rewarded HALF of what they was once — all for a similar value of electrical energy as earlier than.
Slicing margins even nearer to a breakeven level, or probably into the negatives.
And a few large pictures within the house are even warning traders that with this upcoming halving, there’ll most probably be a ton of mining machines being shut down.
Which suggests miners may want to start out getting artistic.
