Mining Bitcoin costs money, and it is getting pricier for miners considering the most recent reward halving. CoinShares tells us it is about $53,000 to mine one Bitcoin these days, and that is an average that large mining companies spend on one BTC.
For those who are unaware, halving entails giving miners half of the Bitcoin they were previously rewarded for cracking blocks that hold information about the Bitcoin network. The money they spend on running their mining machines—primarily the electricity—may seem to have doubled because they will be receiving less Bitcoin.
Furthermore, according to analysts, by 2025, the total power used for Bitcoin mining might reach 700 Exahash. The Bitcoin network will require a lot more electricity to operate. However, some less lucrative mining equipment may shut down soon after the halving, reducing that figure by roughly 10%.
Thus, the price of mining a Bitcoin can increase even further following the halving. While the cost of Kw/h remains the same, miners may see nearly quadruple their costs on paper for items like energy and the machines themselves. They are attempting to address this by locating more affordable power and obtaining better rates on their equipment.
