Bitcoin mining profits don't necessarily fall after halving!

The Bitcoin halving will be completed within this month and so the countdown has begun. And people are currently speculating about it. After the recent Bitcoin halving, when the reward for Bitcoin miners is halved, the profitability of Bitcoin mining will not necessarily decrease. Despite a 50% drop in Bitcoin miners' rewards or a reduction in the Bitcoin (BTC) supply issue, the profitability of Bitcoin mining will not necessarily decrease after the upcoming Bitcoin Halving. This is what Laurent Benayoun, CEO of Akron Trading, said.

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Bitcoin halving is likely to be completed by the 20th of this month. The block issue reward is set to decrease from 6.25 BTC to 3.125 BTC as a result of the bitcoin halving. If we look at the previous Bitcoin halvings, we can see that during that time the block reward reduction forced smaller mining companies to go out of business. This seems to be the case during the Bitcoin halving. It is still thought that after this Bitcoin halving, small traders and mining industries may be forced to go out of business. the

However, much of the situation is currently different due to Ordinals inscription and Bitcoin-native decentralized money, or BTCFi increasing network fees, which Benayoun believes will be different after the 2024 halving. The topic of Bitcoin network fees is mainly related to Bitcoin miners. Bitcoin Fee A transaction fee paid to encourage miners to include a transaction in the following block. The average Bitcoin transaction fee is currently $4.88 per transaction. But this transaction fee has been increased since last month and it is currently less than $16.13 per transaction. So all these factors are leading to increase in network fees. These Bitcoin transaction fees have increased significantly over the past year.

Most miners will continue to be profitable if they hold bitcoins at or above the current rate at which bitcoin prices have risen. This is due to the fact that at the current block reward that Bitcoin miners receive, they are profitable at over $35,000 worth of BTC. Less than that and they will likely lose money. This makes very old hardware less profitable when it comes to Bitcoin mining. Because all the mining tasks done by machines are less rewarding than those done by such old hardware. Newer, more energy-efficient models will continue to be profitable.

An interesting and important point here is that the profitability of Bitcoin miners or the reward does not depend on the size of the mining farm, but on the type of mining equipment. With increasing network fees, it is assumed that fewer mining companies will be forced out of business than in past cycles. But if we look at the past two bitcoin halvings, we see that all the unskilled miners there were and all those unskilled miners are being forced out of business. But this year it is also believed that this will not happen this time due to increase in network fees.