Loss of Income
The upcoming Bitcoin Halving will cut miners’ rewards in half, from 6.25 BTC to 3.125 BTC per block. This will result in a significant loss of revenue for miners, estimated at up to $10 billion annually.
Cushioning the Blow
Miners are exploring ways to mitigate the revenue loss. Some are investing in new equipment and acquiring smaller competitors to reduce competition. Others are diversifying their operations into areas like artificial intelligence (AI).
Competition from Tech Giants
US Bitcoin miners are facing increased competition from tech giants for electricity. These companies are also high-energy consumers and are seeking large amounts of power to run their data centers.
Electricity Constraints
Electricity constraints in the US and high demand from both miners and tech giants have led to a surge in electricity rates. This makes it more difficult for Bitcoin miners to operate profitably in the country.
Tech Giants’ Advantage
Tech companies have an advantage over miners when acquiring power due to their consistent revenue streams. Bitcoin miners, on the other hand, rely on the volatile price of Bitcoin, which can fluctuate significantly.
