• Contact Us
  • Privacy & Policy
Friday, January 15, 2021
ModernCryptos
  • Home
  • Live Updates
    • Cryptocurrency Prices
    • Live ICO
    • Live Exchange
  • Crypto News
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Business
  • Market
No Result
View All Result
  • Home
  • Live Updates
    • Cryptocurrency Prices
    • Live ICO
    • Live Exchange
  • Crypto News
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Business
  • Market
No Result
View All Result
ModernCryptos
No Result
View All Result
Home Crypto News

Bitcoin Halving | How the Miners are Faring So Far

July 6, 2020
in Crypto News
4 min read
0
Bitcoin Halving | How the Miners are Faring So Far
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

On May 11, 2020, Bitcoin successfully executed its third block reward halving. Bitcoin halving events usually occur every four years, and the first and the second events took place in 2012 and 2016, respectively. Since miners’ rewards for verifying blockchain transactions are usually trimmed by 50% following a halving event, past events have forced miners to adopt numerous changes to cater for the drops in profitability. What about the recent halving event? How have things unfolded for miners this time around?

Mining Inefficiencies

One obvious impact of a halving event is the reduced revenues miners receive. To remain profitable, miners are expected to increase their operational efficiencies, and one probable way of doing so is shifting to new mining equipment with more hashes per second and reduced power consumption. According to Ramak J Sedigh, Pouton Mining’s CEO, miners who are still using old generation equipment may be forced out of business unless the price of Bitcoin reaches an all-time high after the May 11 halving.

Price Didn’t Move As Expected

While it was expected that the third halving would have a significant negative impact on Bitcoin prices given that it occurred during the COVID-19 chaos, it was actually eventless. On the contrary, the prices have continued to climb. And because of the BTC price stability, more investors may even be lured to mount for bullish positions in the coming months.

Mining Difficulty Adjustment

BTC blockchain usually adjusts mining difficulty after every 2016 blocks following a drop or rise of the hash rate. So, when some miners close shop due to reduced block rewards, the BTC mining difficulty is also expected to automatically adjust to cater to block interval movements. Over the years, this mining difficulty adjustment has prevented a potential cascade of miner capitulation, and this is what’s expected to happen after the third BTC halving.

So, How Exactly Are Miners Faring and Where Do They Go From Here?

What we have witnessed so far is a mini death spiral scenario. While revenues have been reduced and some miners forced off the chain, there is still some light at the end of the tunnel:

  • BTC price has continued to rise.
  • The cost of transaction fees is increasing, thanks to network congestion. Higher transaction fees translate to more revenues for miners.
  • Power costs are expected to go down with the onset of the monsoon season in China.

Should miners’ revenues reduce further, there are still other steps they can leverage to stay afloat. For instance, they can scale up colocation services and earn extra revenue from hosting and power fees. They can also upgrade their equipment to lower potential exposure to price actions.

Some of these strategies were discussed in the recent online conference organized by Terracrypto on May 19, 2020. They made some valid points that are noteworthy, such as the fact that the hash rate distribution could be another option for increasing mining earnings after the recent Bitcoin halving. This method could allow miners to get higher earnings per tera hash even after the halving. At this point, only the miners will have to deal with this new development. Bitcoin brokers, such as Tenkofx, and traders will continue their daily routine with the hope of taking advantage of the situation.

Even if the profitability of BTC mining reduces after the third halving event, the hash rate may not experience significant hikes. That said, the stability of BTC price in the coming months and the ability to adopt efficient equipment will be key to ensuring that the mining business remains profitable.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © zoomteam

Please See Disclaimer

If You Liked This Article Click To Share

cybersecurityPrevious

Understanding the Cybersecurity Risk of Bitcoin


Credit: Source link

Related articles

Raidenbo Secures Leading Position Offering Innovative Trading Solutions

Raidenbo Secures Leading Position Offering Innovative Trading Solutions

December 7, 2020
The First Crypto Currency Auto Finance Company in the U.S.

The First Crypto Currency Auto Finance Company in the U.S.

October 29, 2020
Share76Tweet47

Related Posts

Raidenbo Secures Leading Position Offering Innovative Trading Solutions

Raidenbo Secures Leading Position Offering Innovative Trading Solutions

December 7, 2020
0

Raidenbo, a fast-growing exchange, has emerged as one the most promising places to trade and earn. Raidenbo offers modern technology,...

The First Crypto Currency Auto Finance Company in the U.S.

The First Crypto Currency Auto Finance Company in the U.S.

October 29, 2020
0

Available now with Crypto Cars Online Dallas/Fort Worth, Texas— October 26, 2020 — Crypto Cars Online announced immediate availability of...

The TAO | A New Framework to Power the Web

The TAO | A New Framework to Power the Web

October 16, 2020
0

The internet has evolved significantly since its inception, spawning the creation of global protocols, frameworks, and new classifications of developers....

Bitcoin is All Grown Up and the Future is Bright

Bitcoin is All Grown Up and the Future is Bright

September 28, 2020
0

Currency has had a fruitful and largely charmed life, and watching it come into its crypto own is heart-warming indeed. ...

California is Leading the Future of America’s Crypto Economy

California is Leading the Future of America’s Crypto Economy

September 10, 2020
0

Despite growing support, cryptocurrencies have yet to see mainstream implementation in the US economy. Many people and regulatory agencies are...

Load More
  • Trending
  • Comments
  • Latest
Volcker Might Have Said Yes to a Digital Dollar – If He Knew What It Was

Volcker Might Have Said Yes to a Digital Dollar – If He Knew What It Was

December 12, 2019
Square Crypto Adds 3 New Members to Complete Inaugural Dev Team

Square Crypto Adds 3 New Members to Complete Inaugural Dev Team

September 20, 2019

70% Stock Market Plunge Could Be Brewing: Analyst

October 5, 2020
Ripple’s Brad Garlinghouse Hints Firm May Seek IPO Within 12 Months

Ripple’s Brad Garlinghouse Hints Firm May Seek IPO Within 12 Months

January 24, 2020
Ethereum Analyst Sees Record High This Week as Price Climbs 60%

Ethereum Analyst Sees Record High This Week as Price Climbs 60%

January 4, 2021
Best Tips On CryptoTrading And Mistakes To Avoid While Trading Cryptocurrencies

Best Tips On CryptoTrading And Mistakes To Avoid While Trading Cryptocurrencies

December 24, 2020
Analyst Expects Ethereum Correction as Key Indicator Peaks

Analyst Expects Ethereum Correction as Key Indicator Peaks

December 22, 2020
Bullish Argument for Ethereum Rapidly Losing Steam as $570 Is Lost

Bullish Argument for Ethereum Rapidly Losing Steam as $570 Is Lost

December 9, 2020
ModernCryptos

MdernCryptos.com is an online news portal which aims to provide latest crypto news direct from market with real time updates!

Topics to Cover

  • Bitcoin
  • Blockchain
  • Business
  • Crypto News
  • Ethereum
  • Market
  • Regulation

Whats New Here!

  • Ethereum Analyst Sees Record High This Week as Price Climbs 60%
  • Best Tips On CryptoTrading And Mistakes To Avoid While Trading Cryptocurrencies
  • Analyst Expects Ethereum Correction as Key Indicator Peaks

Subscribe to get more!

Simply subscribe to our newsletters and we will be in touch. Don't worry, we won't spam you
  • Contact Us
  • Privacy & Policy

© 2019 ModernCryptos.com - all rights reserved

No Result
View All Result
  • Home
  • Live Updates
    • Cryptocurrency Prices
    • Live ICO
    • Live Exchange
  • Crypto News
    • Bitcoin
    • Ethereum
  • Blockchain
  • Regulation
  • Business
  • Market

© 2019 ModernCryptos.com - all rights reserved

  • bitcoinBitcoin(BTC)$13,064.880.65%
  • ethereumEthereum(ETH)$406.27-0.44%
  • tetherTether(USDT)$1.000.01%
  • rippleXRP(XRP)$0.2545180.61%
  • bitcoin-cashBitcoin Cash(BCH)$269.26-0.33%
  • Binance CoinBinance Coin(BNB)$30.841.81%
  • litecoinLitecoin(LTC)$58.161.61%
  • cardanoCardano(ADA)$0.105520-1.66%
  • eosEOS(EOS)$2.713.04%
  • moneroMonero(XMR)$137.143.72%
  • tronTRON(TRX)$0.0272551.31%
  • stellarStellar(XLM)$0.083631-0.21%
  • tezosTezos(XTZ)$2.15-2.08%
  • CosmosCosmos(ATOM)$5.28-3.93%
  • LEO TokenLEO Token(LEO)$1.261.17%
  • iotaIOTA(MIOTA)$0.279914-0.06%
  • dashDash(DASH)$72.30-1.09%