It requires money to mine Bitcoin, and since the most recent reward halving, it is becoming more expensive for miners. According to CoinShares, the average cost for mining one Bitcoin these days is $53,000, which is what big mining companies pay for each coin.
In case you’re unaware, halving entails giving miners half of the Bitcoin they were previously rewarded for cracking blocks that include information about the Bitcoin network. The cost of running their mining machines—primarily the electricity—may seem to double since they will be receiving less Bitcoin.
Furthermore, according to analysts, by 2025, the total power used for Bitcoin mining might reach 700 Exahash. The Bitcoin network will require a lot more electricity to operate. However, some less lucrative mining equipment may shut down soon after the halving, reducing that figure by around 10%.
However, there is a silver lining. A few astute miners are relocating to areas where they may obtain less expensive, frequently wasted energy, such as gas that would eventually burn up. Furthermore, in nations where energy prices are steady, artificial intelligence is being used to increase profits. This has the potential to revolutionise the industry and drive the network going forward.
Thus, the price of mining a Bitcoin can increase even further following the halving. The cost of Kw/h remains the same, but the miners’ expenses for supplies like power and the equipment themselves may nearly quadruple on paper. They’re attempting to address this by locating more affordable electricity and negotiating better prices on their equipment.
They’re paying off debts and preparing for a change in the miners’ market by using the additional money from the bullrun and the low cost of mining.
