A report published by blockchain analytics firm Tradeblock, says that the upcoming Bitcoin halving event will have significant impact on the cost of crypto mining. The report says the cost to mine Bitcoin will rise to over $12,500 per Bitcoin after the halving of block reward, which is set to happen on/or around May 12.
Decline In Bitcoin Supply After Halving Event
The average number of blocks mined in the Bitcoin network per day is currently 144. Miners who find a block on the network currently get 12.5 bitcoin for each block, which means 1,800 bitcoins are mined per day. After the halving event, the mining reward will drop to 6.25 bitcoins per block. Based on the average number of blocks mined on the network, this yields only 900 bitcoins mined per day.
"With this new supply reduction set to occur, we estimate the breakeven cost to mine one bitcoin before and after the halving for newly released mining devices," Tradeblock says. "As resources dedicated to mining rise over time, efficiency gains and/or mining costs rise." Read More...