With #halving approaching #Bitcoin to be held on Friday, it brings with it many implications, and one of them has to do with Bitcoin miners. The halving is an event that will reduce the rewards per mined block by half, so you could say that it would "affect the miners", but does this event really directly affect the crypto miners? Let's explore.
To begin with, the Bitcoin halving that everyone is talking about is an extraordinary event, which when it happens, causes the rewards paid to miners to be reduced by half. In the following days, miners' rewards will go from 6.25 BTC to 3.125 BTC.
The halving is an event that has not gone unnoticed, as there is growing interest from investors, and this can be seen in the increase in the number of searches on Google for the words "Bitcoin Halving". This interest is more present in countries such as Nigeria, the Netherlands, Switzerland and Cyprus.
Now it is also known that this event is scheduled and does not come from now and dates back years, so it could be said that the miners who carried out and who carry out this activity already have knowledge of this.
By reducing rewards for miners, Bitcoin is sought to be more scarce and in turn acts as a deflationary measure, thus further strengthening the asset as a store of value.
Given this, those who are happiest are the #inversores who have already been buying Bitcoin over time, given that the price of the asset has increased exponentially, however, the story is different for the miners who are the " most affected".
How are mining companies acting before the Bitcoin halving?
According to a recent report from Bitwise we have data that the largest Bitcoin mining companies are not selling all their BTC holdings before the halving, as some anticipated. They only sell a small part to cover their operating costs and keep the rest.
In this first quarter of 2024 there is a big difference between Bitcoin mined vs Bitcoin sold. Very different from what was happening in mid-2022 in the middle of #BearMarket .
Mining companies may make this decision because the price of bitcoin has also risen, so they require less Bitcoin to cover their operating costs.
This could also mean that they are waiting for a higher price after the halving to sell and cover the costs of some future operations, which I see is more linked to further optimizing their processes through new mining machines and adopting cheaper energy sources. .
I believe that the halving will mark a new milestone for miners to decide if they remain in competition or perhaps some will abandon due to not being able to adapt to this new change. For now, there are new products in the Bitcoin network such as ordinals and runes, which could be a niche where miners could focus and exploit them, due to transaction costs. We'll see what happens after the halving.
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