CDS Crypto News Grayscale Analysts Warn: Bitcoin Miner Revenues May Fall After Halving
Crypto News

Grayscale Analysts Warn: Bitcoin Miner Revenues May Fall After Halving

Bitcoin miner revenues may fall after April.

230
Grayscale Analysts Warn: Bitcoin Miner Revenues May Fall After Halving

Crypto News – Bitcoin will experience a significant change in about two months, which will reduce the incentive for miners who successfully complete a block by half.

Grayscale Analysts Warn: Bitcoin Miner Revenues May Fall After Halving

Often referred to as “the halvening” or “halving,” the event is viewed as bullish for Bitcoin because, in the past, multiple halvings have been followed by steady price increases. Grayscale researchers caution that a more comprehensive explanation for those price spikes than a straightforward stock and flow analysis is possible.

other cryptocurrencies with similar halving mechanisms, such as Litecoin… (have) not consistently seen price appreciation post-halving. This suggests that while scarcity does sometimes influence price, other factors also play a role,

the analysts

The analysts caution in their report that there is no assurance that prices will rise following a halving event. But since block rewards account for the majority of their income, it will pose a problem for Bitcoin miners. This year’s all-time high for the Bitcoin network’s mining difficulty combined with a drop in block rewards could put miners in a “tense position.”

Can Ordinals Be a Light of Hope for Miners?

Nonetheless, there is a bright side for miners. For miners, transaction fees associated with Ordinals activity on the Bitcoin chain have created a sizable income potential. To date, miners have received payment in excess of $200 million in transaction fees associated with Ordinals; as of now, Ordinals transactions account for 20% of miners’ total earnings.

Miners want more revenue, and Ordinals have brought about a renaissance on Bitcoin with massive demand for block space,

Bob Bodily, co-founder and CEO of Ordinals marketplace Bioniq
Grayscale Analysts Warn: Bitcoin Miner Revenues May Fall After Halving 155380
Written by
lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

Bitcoin Price Surge: Analysts Predict $200,000 by 2025

Bitcoin surpassed $100,000, with analysts predicting it could reach $150,000–$200,000 by 2025...

Bitcoin Price- Bitcoin at $100K: Institutional Inflows and Regulatory Support

Bitcoin hits $100K, sparking optimism. Analysts predict further growth, with targets of...

Understanding Convertible Senior Notes: A Hybrid Debt Instrument for Capital and Equity

Understanding Convertible Senior Notes: A Hybrid Debt Instrument for Capital and Equity

FTX Collapse Sparks Record-Breaking Monetary Relief for CFTC in FY 2024

FTX Collapse Sparks Record-Breaking Monetary Relief for CFTC in FY 2024