Why miners believe the Bitcoin halving will be a perfect storm

Why miners believe the Bitcoin halving will be a perfect storm
September 26, 2023 – 15:23

Luke Rossy, from Hive Blockchain, does not rule out very low profitability after the halving while Niklas Leck, from Penguin, believes that a “perfect storm” could form due to several factors.

Why miners believe the Bitcoin halving will be a perfect storm

Bitcoin will have its next halving next year, for miners from then on they will have half the rewards. Several specialists discussed this at the World Digital Mining Summit 2023, a conference organized by Bitmain in Hong Kong. There they were divided between those who will have very low profitability, and others who will have a “perfect storm.”

Niklas Leck of Bitcoin mining company Penguinassured that “a perfect storm” could occur as a result of two factors.

To review, this Bitcoin halving will reduce the issuance of bitcoins (BTC) from 6.25 to 3.12 per block.

Luke Rossy of Hive Digital Technologies said he imagines “we may get below $30 per PH (petahash),” which takes into account a miner’s profit. “Bitcoin never went below US$50 per PH. Now we are close to US$60. I don’t find it difficult to imagine that we will go below US$30 immediately after the halving,” said the Hive representative.

And he added: “It is time to improve miner efficiency and connect as many miners as possible now, while having a better profitability margin.”

Kevin Zhang, vice president of Bitcoin mining company Foundry, considered that halving “is part of the nature of Bitcoin, like a snake that sheds its skin to become stronger over time.” Of course, he warned that “Miners who do not have competitive equipment will not survive.”

Kulyk added that “the current price of mining equipment is low, considering what you can generate in profits for the next 8 or 9 months, and even more so if you have a low-cost environment.”

For his part, Niklas Leck stated that we are not yet in a bull market, but it is not a bear market either. “It is an accumulation phase that we usually see in bitcoin”he described.

Source: Ambito

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