Bitcoin's halving is approaching in mid-April, and mining rewards will be halved, which could result in a loss of revenue of up to 1.5 trillion yen for miners
The virtual currency Bitcoin will undergo its fourth
Bitcoin (BTC) 'Halving' Will Deal a $10 Billion Blow to Crypto Miners - Bloomberg
https://www.bloomberg.com/news/articles/2024-04-14/bitcoin-halving-will-deal-a-10-billion-blow-to-crypto-miners
Financial troubles for bitcoin miners: A look back, and ahead as the halving looms - Blockworks
https://blockworks.co/news/bitcoin-halving-outlook-for-public-miners
BTC Miners Prepare for $5B Dump after Bitcoin Halving 2024 | Coinspeaker
https://www.coinspeaker.com/btc-miners-5b-dump-bitcoin-halving-2024/
The virtual currency Bitcoin undergoes an update called the 'halving' every four years, in which the reward for bitcoin mining is halved. When the halving occurs in mid-April 2024, the reward for bitcoin mining is scheduled to be reduced from 6.25 BTC (approximately 60 million yen) to 3.125 BTC (approximately 30 million yen). It has been reported that this could result in the bitcoin mining market experiencing a revenue loss of as much as $10 billion in one year.
The halving of mining rewards may prevent miners who make a living from mining Bitcoin from making a profit. This is not a new concern, and is a problem that several Bitcoin miners have faced in previous halvings.
With the halving approaching, many miners are looking to diversify their revenue streams to withstand the upcoming changes by installing more efficient mining rigs. Some miners have expressed concern that they are being forced to shut down their mining rigs.
On the other hand, some experts argue that these concerns are overblown and that large mining companies will be able to adapt and continue to thrive even after the halving. Coinbase, a cryptocurrency exchange, noted that 'the price of Bitcoin soared 139% in the six months leading up to the first halving, and soared 923% in the six months leading up to the next halving,' pointing out that the negative effects of the halving could be offset by the increase in Bitcoin's value.
However, since Coinbase was referring to price fluctuations in the early days of Bitcoin, it is unclear whether we can expect a similar surge in Bitcoin prices following this halving.
Chase White, a senior analyst at investment bank Compass Point Research & Trading, said: 'Private miners who don't have easy access to public funds will likely be forced to shut down due to the impact of the cuts in mining rewards per block.'
While White expects the halving to affect almost all miners, he also points out that 'miners with little or no debt, who mine in locations with good energy costs, and who operate the most efficient mining rigs are likely to be only slightly affected by the halving.'
Meanwhile, Kayla Joyce of law firm Holland & Knight noted that this halving is different from the previous halving (2020) and the one before that (2016). Joyce predicted that there will be a wave of consolidation across the mature cryptocurrency industry, which could lead to defaults. However, Joyce did not reveal which miners are at risk of bankruptcy.
He also said, 'Because the Bitcoin mining industry was small in scale in the cryptocurrency market prior to 2021, the impact of the 2020 halving was minimal.' 'It was only in 2021 that investors began to pour funds into the industry,' he said, emphasizing that this is the first time that a halving will occur at a time when the mining industry is mature.
Marcus Thielen, head of research at 10x Research, predicted that miners could sell as much as $5 billion worth of Bitcoin after the halving, which could keep Bitcoin's value stable after the halving.
Marathon Digital, one of the world's largest bitcoin miners, is estimated to mine 28-30 bitcoins (BTC) per day. After the halving, Marathon Digital's mining volume will be halved to 14-15 BTC per day, so 'like other miners, they will likely adopt a strategy of selling their bitcoins,' Thielen speculates.
In addition, there are reports that some miners are likely to relocate their bases to countries with lower electricity costs, such as Ethiopia, Tanzania, Paraguay, and Uruguay, as the halving approaches.
Miners' income will plummet with the 'Bitcoin halving' around April 20, 2024, and it is likely that they will move their bases to low-cost countries such as Ethiopia, Tanzania, Paraguay, and Uruguay in the future.
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