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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, lets?
This upcoming April would be the subsequent halving cycle for Bitcoin — aka BTC mining rewards get minimize in half.
More often than not (not less than 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 most important job is to unravel complicated cryptographic puzzles time and time once more.
Cool.
However to do this, miners dissipate a TON of electrical energy…a lot electrical energy that numerous mining teams are discovering it onerous to stay worthwhile at present electrical energy charges with at this time’s block reward costs.
Beginning to see the larger image?
When Bitcoin halves, miners might be rewarded HALF of what they was once — all for a similar price of electrical energy as earlier than.
Reducing margins even nearer to a breakeven level, or probably into the negatives.
And a few large photographs within the house are even warning traders that with this upcoming halving, there’ll most certainly be a ton of mining machines being shut down.
Which suggests miners would possibly want to begin getting artistic.