Although Bitcoin is still under a relatively strict regulatory environment in China, the Securities Times, an important media in the global financial community, recently reported the fourth halving of Bitcoin, which undoubtedly attracted widespread attention around the world. This event has a profound impact not only on Bitcoin itself, but also on the global mining industry.
According to the Securities Times, the fourth Bitcoin halving has officially taken place, and this move is expected to accelerate competition and involution among miners. Before the halving, although the daily output of Bitcoin fluctuated, it generally maintained an average of 6.25 Bitcoins every 10 minutes. This is equivalent to about 900 Bitcoins per day. However, with the halving event, this number will drop sharply to about 450 per day.
If Bitcoin fails to continue its previous growth momentum and remains at the pre-halving price level (about $60,000 to $65,000 per coin), the entire mining industry may face a loss of more than $10 billion in revenue in the next year. Faced with this possible prospect, miners are not in a hurry to sell their Bitcoins before the halving. Instead, they hope that the value of Bitcoin will rise after the halving, so that they can make up for the loss caused by the decline in production by selling more Bitcoins at high prices.
Since the output of Bitcoin is capped within a certain period of time, the more computing power a miner has, the greater the share of rewards they receive. In order to compete for this limited reward, miners such as Marathon Digital Holdings and CleanSpark have invested heavily in purchasing super-fast computers and seeking to acquire smaller competitors to increase computing power and alleviate the revenue pressure that may be caused by the decline in output.
In addition, the Bitcoin halving event has also had an impact on the stock prices of several miners. For example, Riot Platforms and HIVE Digital Technologies have seen their stock prices fall by 26.37% and 15.58% respectively in the past month. Hut8 Mining’s stock price has fallen by 36.11% since the beginning of the year.
Although there are some restrictions on Bitcoin mining and trading in China, the global Bitcoin market is still full of vitality and variables. The fourth Bitcoin halving has undoubtedly brought new challenges and opportunities to the global mining industry. Miners need to actively respond to market changes and adjust strategies to adapt to the new market environment.
Overall, the Bitcoin halving event is not only a technical update, but also a deep reshuffle of the global mining industry. In the future, we can foresee that with the continuous changes and development of the Bitcoin market, the mining industry will also usher in more changes and innovations.
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