Bitcoin halving, the anticipated event in the crypto space, is just around the corner. However, this year’s Bitcoin halving less than two months away is the most anticipated in the short history of crypto space because of the recent price drop of Bitcoin and the miners’ sordid state.
Bitcoin miners are undoubtedly the backbone of the crypto community, as they keep the network working. Miners are rewarded with Bitcoin, which is then sold in the open market. The event of Bitcoin halving takes place after every four years; this is to control the flow of Bitcoin in the crypto market. Therefore, after every four years, the reward of miners is halved, literally, i.e., if the reward is 25 Bitcoins for mining a block after halving it would be 12.5.
Miners can make a profit by either selling the Bitcoin or by registering a loss, depending on the BTC price. Hence, the price of Bitcoin is the major determinant of the mining industries’ health.
Therefore, in view of the BTC price drop before the halving, it is worth noting how the miners reacted. As a matter of fact, it was observed that miners stood tall in the face of the recent price drop.
Bitcoin halving: breaking point for Bitcoin mining?
Per the latest study conducted by Blockware Solutions, it was found that this upcoming Bitcoin halving can trigger and could prove to be a coup de grace. The study reveals that the mining network is classified into different layers, depending on the cost of electricity.
Currently, miners with low cost of electricity make larger profits and, thereby, probability upgrading to new mining rigs is relatively low and vice versa to new mining rigs.
At this point, the mining community would be split apart. Those with high electricity costs in layers one and two are likely to be wiped out while the others are expected to survive.