{"id":8102,"date":"2020-02-08T11:50:35","date_gmt":"2020-02-08T09:50:35","guid":{"rendered":"https:\/\/forklog.media\/?p=8102"},"modified":"2020-02-09T01:45:55","modified_gmt":"2020-02-08T23:45:55","slug":"how-miners-brace-themselves-for-halving-and-how-it-can-impact-bitcoin","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/how-miners-brace-themselves-for-halving-and-how-it-can-impact-bitcoin\/","title":{"rendered":"How Miners Brace Themselves For Halving, and How It Can Impact Bitcoin"},"content":{"rendered":"

Halving is probably the most anticipated event of 2020 in the crypto-industry. It is a scheduled decrease in block reward from 12.5 to 6.25 BTC. Since the transaction fees comprise a small fraction of miners\u2019 income, they will basically have half of the money cut out.<\/span><\/p>\n

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In this article we look at how the mining industry is preparing for the halving event and what does it change for miners.<\/span><\/p>\n

Forewarned Is Forearmed<\/span><\/h2>\n

For the last year, the hash rate of Bitcoin has been growing almost uninterrupted. As a result, mining difficulty has grown as well. This happened partly because more devices got hooked up for mining and partly because of the shift to new better devices.<\/span><\/p>\n

Back in 2019, JPMorgan Chase experts <\/span>noted<\/span><\/a> that Bitcoin is worth less than the costs to mine. At that time, miners had to spend $4060 to get 1 Bitcoin worth around $3600. This level was surpassed in April and isn\u2019t anywhere close since then.\u00a0<\/span><\/p>\n

Coin Share analysts set a higher break-even point at $5700. They\u2019ve included the standard cost of electricity ($0.05 per kWh), equipment amortization for 18 months, and the operational expenses of 15% of the total costs.<\/span><\/p>\n

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8\/ Unsuprisingly, miners are making some serious dough right now – with average all-in ROI breakeven levels at about $5,700 (assuming 18-month depreciation, \u00a25\/kWh, and 15% additional C&O OPEX).<\/p>\n

What does that mean for profitability? I'll let you do the math… \ud83d\udcb0\ud83d\udcb0<\/p>\n

— Christopher Bendiksen (@C_Bendiksen) June 6, 2019<\/a><\/p><\/blockquote>\n