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For Crypto Miners, Bitcoin’s Halving Could Mean a Doubling in Costs

Bitcoin investors speculate the upcoming halving could send prices skyrocketing to $90,000 or higher.


To the operators of high-speed computers used to mine for bitcoin, the halving looks more like a doubling — of costs.


In a new report, the crypto-focused research firm TradeBlock estimates the average cost to mine a single bitcoin (BTC) could jump to $12,525 after the halving, expected in May. That’s nearly double the average cost of $6,851 now. Essentially, miners will have to run twice the number of computations, with a corresponding increase in electricity usage, to get the same amount of bitcoin they’re getting now.


Bitcoin Halving is set to take place in May 2020

The estimated cost is also well above the current market price of about $10,300, providing an illustration of how the halving could turn the crypto-mining industry’s profitability upside-down if market prices don't rise.


The halving was programmed into bitcoin’s original network programming as a a bulwark against inflation when the cryptocurrency was created just over a decade ago. The idea was a predictable and ever-slowing pace of new supply of the cryptocurrency would help to stabilize bitcoin's purchasing power — a contrast with government-backed currencies that can often be printed at will by human central bankers. Read More