For investors, Halving is a celebration because prices often rise. But for Miners, Halving is a survival shock. Overnight, their income is slashed by half while costs remain exactly the same.
🔸 The Miner income formula is simple:
Income = (Block\ Reward / 2) + Transaction\ Fees
The moment Halving happens, the base salary evaporates by 50%. To maintain the same profit margin, Bitcoin price must double, or transaction fees must spike. If the price trades sideways, miner profits tank.
🔸 Halving acts as a filter to eliminate the weak.
Miners using old hardware or operating in high electricity cost areas will instantly fall below the Break even Point.
Result is they are forced to unplug, sell for scrap, or go bankrupt. Network Hashrate may temporarily drop during this phase.
🔸 To survive Halving, Miners can not just wait for the price to pump. They are forced to evolve:
Buy the latest mining rigs with higher efficiency to save power.
Move farms to locations with abundant and dirt cheap energy.
🔹 Halving is Bitcoin mechanism of Natural Selection. It is brutal but necessary. It forces the mining industry to become more efficient, greener, and energy saving. Only the fittest whales survive to secure the network for the next 4 years.
Do you see Halving as a major risk weakening the Bitcoin network, or as the catalyst making it scarcer and more valuable?
News is for reference, not investment advice. Please read carefully before making a decision.
