Fun

Bitcoin needs to hold above $80,000 to keep mining profitable post-halving

News Feed - 2024-04-08 07:04:22

Prashant Jha13 hours agoBitcoin needs to hold above $80,000 to keep mining profitable post-halvingFor miners to remain profitable and continue their mining operations, the BTC price must rise above $80,000 post-halving.12909 Total views41 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAccording to data from CryptoQuant CEO Ki Young Ju, the current cost of mining using Antminer S19 XPs will rise from $40,000 to $80,000 after the Bitcoin halving in mid-April. 


The Bitcoin halving is a milestone event occurring every 210,000 blocks or roughly every four years. The halving event cuts the block reward earned by miners by half.


Apart from indirectly impacting the price of Bitcoin (BTC), the halving event significantly impacts miner behavior, as mining costs double to earn the same amount of BTC.CryptoQuant CEO on the Bitcoin halving. Source: Ki Young Ju


After the May 2020 halving, the price for miners to continue mining profitably rose above $30,000, but the price of BTC also pumped to a new all-time high of $69,000 during the same cycle.


The average Bitcoin mining cost as of April 6 is $49,902, and the BTC price is above $70,000 at the time of writing. After the halving on April 20, average mining costs will rise above $80,000, and for miners to continue operating profitably, the BTC price must trade higher than that price.Average Bitcoin mining cost. Source: MacroMicro


Historically, BTC prices have seen a multifold jump in price after the halving. Following the 2012 halving, the price of Bitcoin increased by around 9,000% to $1,162.


After the 2016 halving, the price of Bitcoin increased by about 4,200% to $19,800, and after the 2020 halving, the price of Bitcoin increased by almost 683% to $69,000.


Related:Bitcoin halving will have to battle with ‘weak time of year’ — Coinbase


Thus, miners have remained profitable despite fears of going out of business after each halving. Halving events also make several mining machines obsolete, as they can’t compete with the high hashing power demand.


After each halving, there comes a period when the BTC price remains below the miner’s profitable price. This period is marred by uncertainty and an increased selling of mining rigs, coupled with many small and lone miners often going out of business.


However, as demand increases due to the declining market supply, the price picks up and often rises higher than the average mining costs for miners.


Magazine:Creating ‘good’ AGI that won’t kill us all — Crypto’s Artificial Superintelligence Alliance# Bitcoin# Blockchain# Cryptocurrencies# Mining# Business# Bitcoin Mining# Halving# Bitcoin HalvingAdd reaction

News Feed

UwU Lend offers a $5M bounty to whoever catches its exploiter
Brayden Lindrea3 hours agoUwU Lend offers a $5M bounty to whoever catches its exploiterThe UwU Lend hacker has now stolen a combined $24 million from the protocol across two attacks.1270 Total views14 Total sharesListen
Korean Government Says 28 Crypto Exchanges Have Met Regulatory Requirements to Continue Operations
Korean Government Says 28 Crypto Exchanges Have Met Regulatory Requirements to Continue Operations The deadline for cryptocurrency exchanges to meet the requirements to continue op
Megan Nyvold10 hours agoHow Bitcoin mining is a model for modern industrial loadsWe are moving from a model of fossil-fueled generation, meaning grid operators must find ways to modulate demand up and down, rather than j
Dogecoin Enters Danger Zone — Chartist Predicts Sharp Drop Ahead
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Reported First Real Estate Purchase Made With Bitcoin in Chile
Reported First Real Estate Purchase Made With Bitcoin in Chile Yuval Ben Haym, regional manager of Remax, a real estate firm that operates worldwide, has announced that the “
Massachusetts-Based Bankprov to End Loan Offerings Secured by Cryptocurrency Mining Rigs
Massachusetts-Based Bankprov to End Loan Offerings Secured by Cryptocurrency Mining Rigs The Amesbury, Massachusetts-based Bankprov, a subsidiary of Provident Bancorp, has announce
South Korean Financial Regulator Confirms Privacy Coin Delistings- Adds New Guidelines to Report Unusual Transactions
South Korean Financial Regulator Confirms Privacy Coin Delistings- Adds New Guidelines to Report Unusual Transactions South Korean financial watchdogs are about
Ana Paula Pereira16 hours agoRobert F. Kennedy Jr. invested up to $250,000 in Bitcoin after Miami conferenceThe recent investment disclosure contrasts with his claims in May that he was not an investor in Bitcoin.12317 T
Bitcoin Extreme Greed Is Nearly Here: Will This Lead To A Top?
Este artículo también está disponible en español. Data shows the Bitcoin market sentiment has nearly turned to extreme greed as the cryptocurrency’s price has ralli
Crypto staking rewards are now 450% higher than S&P 500 dividends
Ciaran Lyons2 hours agoCrypto staking rewards are now 450% higher than S&P 500 dividendsWhile the S&P 500 dips in average dividend payouts, crypto staking rewards continue to surge with the highest reward returni
Ana Paula Pereira7 hours agoMicrosoft to form nuclear power team to support AI: ReportMicrosoft is forming a new team of professionals to advance its artificial intelligence plans with Small Modular Reactors and microrea
Russia’s Telecom Watchdog Roskomnadzor Targets Another 6 VPN Providers
Russia’s Telecom Watchdog Roskomnadzor Targets Another 6 VPN Providers Roskomnadzor, the government body responsible for oversight of communications in Russia, is taking steps to