Bitcoin mining costs will rise sharply after the upcoming BTC halving event, says a report published by the crypto analytics firm Tradeblock. The cost to mine one Bitcoin will be more $12,500. Set to happen in May 2020, the halving is significant from many viewpoints.
The break-even costs associated with mining Bitcoin will significantly increase as the number of BTC available for mining will plunge to 50 percent. The reduction in supply will also reduce the margin of miners. A miner would have to look for innovative ways to supplement their income post BTC halving considering that charges on mining profits are also under discussion. As the hash rate rises in conjunction with the BTC price, profit margins are muted.
Tradeblock report goes beyond Bitcoin mining costs
The report mentions that the hash rate of the network is making new highs consistently. As the resources to mine are set to rise post halving, the hash rate must keep on climbing to offset the losses. Moreover, a corresponding increase in BTC prices must also happen to ensure miners remain in business. Read More