Türkçe
Español
CryptoQuant CEO Ki Young Ju has shared data indicating that the cost of mining using Antminer S19 XPs will rise from $40,000 to $80,000 following the Bitcoin halving event in mid-April. The Bitcoin halving event is a milestone process that occurs every 210,000 blocks or roughly every four years. This event cuts the block reward earned by miners by half.
Prominent Figure Comments on Halving
Bitcoin not only indirectly affects the price, but the halving event also significantly influences miner behavior due to the doubling of mining costs to earn the same amount of Bitcoin.
Following the May 2020 halving event, the price needed for miners to continue mining profitably rose above $30,000, but Bitcoin’s price also reached an all-time high of $69,000 during the same cycle.
As of April 6, the average Bitcoin mining cost is $49,902, and the price of Bitcoin at the time of writing this article is above $70,000. However, after the halving event planned for April 20, the average mining costs are expected to exceed $80,000, and for miners to continue operating profitably, the Bitcoin price will need to trade above this cost.
Data on the Halving Process
Historically, the Bitcoin price has seen a significant increase following halving events. After the 2012 halving, the Bitcoin price rose by approximately 9,000% to $1,162. Following the 2016 halving, the price increased by about 4,200% to $19,800, and after the 2020 halving, it nearly rose by 683% to $69,000. Thus, miners continued to remain profitable after each halving event despite fears of unemployment. Halving events also render several mining machines obsolete as they cannot compete with the high hash power demand.
After each halving event, there comes a period when the Bitcoin price falls below the miner’s profitable price. This period is overshadowed by uncertainty, increased sales of mining equipment, and often bankruptcy of many small and solo miners. However, as market supply decreases and demand increases, the price rises and is usually higher than the average mining costs for miners.
