- Bitcoin miners may shift towards AI due to the potential for higher revenue, CoinShares said.The average bitcoin production cost post-halving is about $53,000.Some miners are actively managing financial liabilities and are using excess cash to pay down debt, the report said.
After the bitcoin halving, crypto miners could possibly move towards using artificial intelligence and operating in energy-efficient areas as it may lead to increased earnings according to a report from CoinShares published on Friday.
Every four years, the production of new bitcoins is reduced by half, which in turn decelerates the expansion of the bitcoin market. This reduction took place last Friday evening.
According to the report, miners are expected to encounter significant price hikes following the halving event. Specifically, electricity expenses and total production costs may nearly double. To offset these increased costs, mining businesses can adopt strategies such as improving energy efficiency, enhancing mining productivity, and investing in affordable hardware.
In Q4, the authors estimated that the average cost to produce a bitcoin, considering the weighted cash costs, was around $29,500. Following the halving event, it is projected that this cost will rise to approximately $53,000. The electricity expense per bitcoin in Q4 amounted to roughly $16,300, and there are predictions that it will climb up to nearly $34,900 after the halving.
Based on the predictions of the asset manager, the hashrate could reach a level of 700 exahashes by the year 2025. However, following the halving, there is a likelihood that the hashrate may decrease by around 10%. This decline could occur as less profitable mining machines are switched off by miners in response to reduced profitability. Additionally, according to these forecasts, the hash price is anticipated to decrease to approximately $53 per terahash per day following the halving event.
In simpler terms, hashrate represents the total processing power collectively employed in mining new blocks and confirming transactions on a proof-of-work blockchain system.
Miners managed by CoinShares are proactively handling their financial obligations, with some even utilizing surplus funds to reduce existing debts.
Read more: Bitcoin Miners Are Better Positioned for the Halving This Time Round: Benchmark
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2024-04-22 11:18