According to U.Today, the cost of mining Bitcoin is on the rise, with the recent reward halving making it more expensive for miners. CoinShares reports that it now costs approximately $53,000 to mine a single Bitcoin, an average amount spent by large mining companies. The term 'halving' refers to the process where miners receive half the Bitcoin they used to for decoding blocks containing data about the Bitcoin network. As a result, the cost of operating their mining machines, primarily electricity, could effectively feel like it has doubled.
Experts predict that the total power required for Bitcoin mining could increase to 700 Exahash by 2025, indicating a significant increase in the power needed to run the Bitcoin network. However, following the halving, less profitable mining machines may be switched off, potentially reducing this number by around 10%.
Despite the challenges, there are potential solutions. Some miners are relocating to areas where they can access cheaper, often wasted energy, such as gas that would otherwise be burned off. Additionally, the use of AI in countries where energy is stable and affordable is becoming more prevalent. This could be a game-changer, potentially fueling the network in the future.
Post-halving, the cost of mining a Bitcoin could increase even further. Miners' expenses, such as electricity and equipment, might almost double on paper, while the price for Kw/h remains the same. To cope with this, miners are seeking better deals on their equipment and cheaper power sources. They are using the extra cash from the bull run and low mining costs to pay off debts and prepare for a shift in the mining market.