CDS Crypto News Countdown to the Halving: Why Bitcoin Mining Might Remain Profitable
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Countdown to the Halving: Why Bitcoin Mining Might Remain Profitable

Acheron Trading’s CEO suggests that the rising Bitcoin network fees could provide a supplementary source of income for miners following the halving, thanks to the emergence of Ordinals inscriptions and BTCFi.

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Countdown to the Halving: Why Bitcoin Mining Might Remain Profitable

Crypto News-Bitcoin mining profitability isn’t expected to take a nosedive post the upcoming halving,” shared Laurent Benayoun, CEO of Acheron Trading, in a recent interview with Cointelegraph.

Countdown to the Halving: Why Bitcoin Mining Might Remain Profitable

Benayoun emphasized, “Contrary to expectations, miners might actually see better prospects post the halving. The reduction in mining rewards will likely be offset by a surge in network fees.”

With the Bitcoin halving slated to slash block rewards from 6.25 BTC to 3.125 BTC on April 19, concerns have been raised about the impact on smaller mining operations. Yet, Benayoun is optimistic, citing the rise in network fees driven by innovations like NFTs and Bitcoin-native DeFi initiatives.

“Projects integrating NFTs and DeFi onto the Bitcoin network have been on the rise, which translates to higher network fees,” Benayoun added.

Transaction fees, crucial for miners, have been on the rise, averaging $4.88 per transaction presently, down from $16.13 a month ago. Over the past year, Bitcoin transaction fees have surged by over 86%, reflecting growing demand for blockchain transactions.

Bitcoin Mining Profitability: Stability Expected Above $70,000 Threshold

Joe Downie, CMO of NiceHash, echoed similar sentiments, noting that most mining operations would stay profitable if Bitcoin prices remain above $70,000. Downie explained, “As long as Bitcoin hovers above $70,000, profitability remains intact for most miners, given the current block rewards.”

However, the profitability of mining ventures isn’t solely dictated by Bitcoin’s price. Downie emphasized the significance of mining equipment quality and energy efficiency.

“Newer, energy-efficient models will continue to thrive post-halving, while older hardware might struggle,” Downie pointed out.

Despite recent fluctuations in Bitcoin’s price, mining revenue hit a remarkable $75.9 million on March 6, following Bitcoin’s surge to a new all-time high above $69,200.

Benayoun remains confident that the current cycle will be less harsh on mining firms compared to previous ones, thanks to the combined effect of price appreciation and rising network fees.

“In past cycles, we witnessed less efficient mining operations folding under pressure. This time, however, the landscape seems more resilient, thanks to the uptick in network fees,” Benayoun concluded.

Countdown to the Halving: Why Bitcoin Mining Might Remain Profitable

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