{"id":12390,"date":"2024-04-09T13:49:57","date_gmt":"2024-04-09T10:49:57","guid":{"rendered":"https:\/\/forklog.com\/en\/bitcoin-mining-costs-set-to-surge-post-halving-expert-reveals\/"},"modified":"2024-04-09T13:49:57","modified_gmt":"2024-04-09T10:49:57","slug":"bitcoin-mining-costs-set-to-surge-post-halving-expert-reveals","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitcoin-mining-costs-set-to-surge-post-halving-expert-reveals\/","title":{"rendered":"Bitcoin Mining Costs Set to Surge Post-Halving, Expert Reveals"},"content":{"rendered":"<p>The cost of mining Bitcoin using the Antminer S19 XP is expected to rise from $40,000 to $80,000 following the halving, according to Ki Young Ju, CEO of CryptoQuant.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> mining costs are set to double by the end of the month after the halving, jumping from $40K to $80K for S19 XPs, commonly utilized by US miners.<\/p>\n<p>Chart by <a href=\"https:\/\/twitter.com\/clayop?ref_src=twsrc%5Etfw\">@clayop<\/a> <a href=\"https:\/\/t.co\/iElf2i7Kok\">pic.twitter.com\/iElf2i7Kok<\/a><\/p>\n<p>\u2014 Ki Young Ju (@ki_young_ju) <a href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1777242916098101587?ref_src=twsrc%5Etfw\">April 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The expert noted that this model is widely used by American miners. It is the most energy-efficient in the S19 series, which still generates a significant portion of the hashrate, according to <a href=\"https:\/\/coinshares.com\/research\/2024-mining-report\">CoinShares<\/a>.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Otchet-CoinShares-o-majninge-za-2024-god-Google-Chrome.webp\" alt=\"Otchet-CoinShares-o-majninge-za-2024-god-Google-Chrome\" class=\"wp-image-230189\"\/><figcaption class=\"wp-element-caption\">Data: CoinShares.<\/figcaption><\/figure>\n<p>The head of CryptoQuant emphasized that after the third halving in 2020, only the subsequent parabolic price increase of digital gold ensured profitable operations for miners.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Since the May 2020 halving, mining costs doubled, yet a parabolic bull run ensued, covering these costs and achieving profitability. <a href=\"https:\/\/t.co\/scE9iiXbOI\">pic.twitter.com\/scE9iiXbOI<\/a><\/p>\n<p>\u2014 Ki Young Ju (@ki_young_ju) <a href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1777242919659020429?ref_src=twsrc%5Etfw\">April 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A similar assessment was <a href=\"https:\/\/www.coindesk.com\/consensus-magazine\/2024\/04\/08\/6-ways-the-halving-will-impact-bitcoin-mining\/\">provided<\/a> by Hashlabs Mining co-founder Jaran Mellerud. According to his calculations, direct costs for mining Bitcoin with the Antminer S19J Pro in the US will reach $75,000 after the block reward is halved. This model is less efficient than the S19 XP but occupies a larger share of the equipment fleet.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/6-sposobov-kotorymi-sokrashhenie-vdvoe-povliyaet-na-majning-bitkojnov-Google-Chrome.webp\" alt=\"6-sposobov-kotorymi-sokrashhenie-vdvoe-povliyaet-na-majning-bitkojnov-Google-Chrome\" class=\"wp-image-230190\"\/><figcaption class=\"wp-element-caption\">Data: CoinDesk.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Many miners in the US may face cash flow issues post-halving and thus will be forced to conduct a large-scale upgrade of their equipment,&#8221; Mellerud predicted.<\/p>\n<\/blockquote>\n<p>In this situation, transitioning to the S21 series becomes &#8220;a necessity rather than a choice,&#8221; he stated.<\/p>\n<p>Bitmain announced the flagship device of this series in August 2023.<\/p>\n<p>In October, the company released the Antminer T21 model with slightly lower power. In the same month, the main competitor, MicroBT, introduced a new generation of miners.<\/p>\n<p>These series provide the highest daily profit metrics, according to Hashrate Index.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"513\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Hashrate-Index-Your-Definitive-Proof-of-Work-Source-HashrateIndex-Google-Chrome-1024x513.jpg\" alt=\"Hashrate-Index-Your-Definitive-Proof-of-Work-Source-HashrateIndex-Google-Chrome\" class=\"wp-image-230191\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Hashrate-Index-Your-Definitive-Proof-of-Work-Source-HashrateIndex-Google-Chrome-1024x513.jpg 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Hashrate-Index-Your-Definitive-Proof-of-Work-Source-HashrateIndex-Google-Chrome-300x150.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Hashrate-Index-Your-Definitive-Proof-of-Work-Source-HashrateIndex-Google-Chrome-768x385.jpg 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Hashrate-Index-Your-Definitive-Proof-of-Work-Source-HashrateIndex-Google-Chrome.jpg 1394w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: Hashrate Index.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;While switching to the latest rigs allows operations to continue even under high costs, it is unlikely to be a viable long-term strategy. The need for constant equipment upgrades, often before previous investments have paid off, underscores the instability of this approach,&#8221; Mellerud warned.<\/p>\n<\/blockquote>\n<p>In his view, various methods should be employed to enhance competitiveness, including:<\/p>\n<ul class=\"wp-block-list\">\n<li>reducing operational expenses;<\/li>\n<li>improving the efficiency of outdated miners through software solutions;<\/li>\n<li>seeking opportunities for additional revenue, such as utilizing excess heat.<\/li>\n<\/ul>\n<p>Mellerud also suggests that post-halving, the trend of expanding mining geography in search of &#8220;cheap electricity&#8221; will intensify. He noted that companies are already actively exploring emerging markets in Africa, Latin America, and Asia.<\/p>\n<p>Bitfarms operates in Argentina and Paraguay, with Marathon also entering the latter, while Bitdeer expands its capacity in Bhutan, the expert cited as examples. According to Bloomberg, Chinese miners <a href=\"https:\/\/u1f987.com\/en\/news\/chinese-miners-relocate-to-ethiopia-bloomberg-reports\">are relocating to Ethiopia<\/a>.<\/p>\n<h2 class=\"wp-block-heading\">Will the Halving Seriously Impact Hashrate and Price?<\/h2>\n<p>According to research by Galaxy Digital experts, 15-20% of Bitcoin network&#8217;s computational power <a href=\"https:\/\/u1f987.com\/en\/news\/galaxy-digital-assesses-hashrate-impact-post-halving\">will become unprofitable<\/a> and may be shut down post-halving.<\/p>\n<p>Top managers of mining companies <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-halving-a-test-of-miners-efficiency\">agreed<\/a> with the inevitable decline in hashrate overall but found it difficult to predict the scale.<\/p>\n<p>In Mellerud&#8217;s opinion, the reduction will be moderate, ranging from 5-10%. His former colleagues at Hashrate Index provided an even lower estimate of 3-7%.<\/p>\n<p>The Hashlabs Mining co-founder justified the forecast with the current high average profitability of Bitcoin mining compared to its price. According to <a href=\"https:\/\/en.macromicro.me\/collections\/3785\/crypto\/29435\/bitcoin-production-total-cost\">MacroMicro<\/a>, the figures are $51,911 and $70,057, respectively.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"433\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Average-Mining-Costs-Cryptocurrency-Collection-MacroMicro-Google-Chrome-1024x433.jpg\" alt=\"Bitcoin-Average-Mining-Costs-Cryptocurrency-Collection-MacroMicro-Google-Chrome\" class=\"wp-image-230192\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Average-Mining-Costs-Cryptocurrency-Collection-MacroMicro-Google-Chrome-1024x433.jpg 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Average-Mining-Costs-Cryptocurrency-Collection-MacroMicro-Google-Chrome-300x127.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Average-Mining-Costs-Cryptocurrency-Collection-MacroMicro-Google-Chrome-768x325.jpg 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Average-Mining-Costs-Cryptocurrency-Collection-MacroMicro-Google-Chrome.jpg 1362w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: MacroMicro.<\/figcaption><\/figure>\n<p>The expert also noted that approximately 70% of the operational equipment was commissioned before January 2022. As a result, it has operated for several months under much harsher economic conditions than those expected post-halving, he emphasized.<\/p>\n<p>Mellerud does not anticipate a significant impact of the block reward reduction on Bitcoin&#8217;s price. The event will not trigger a bull market contrary to the popular narrative, the expert believes. He argues that the halving will slightly reduce the coin&#8217;s supply, and demand will remain the decisive factor.<\/p>\n<p>According to Ki Young Ju, on-chain indicators suggest a favorable opportunity to buy Bitcoin, as the atmosphere resembles the previous halving.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Same vibe as the previous <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> halving. <a href=\"https:\/\/t.co\/Iez8vXkPvw\">https:\/\/t.co\/Iez8vXkPvw<\/a><\/p>\n<p>\u2014 Ki Young Ju (@ki_young_ju) <a href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1777258622277574969?ref_src=twsrc%5Etfw\">April 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, after the 2020 halving, miners shifted to net sales of mined coins. A significant price increase began only months later, with the next peak reached in November 2021.<\/p>\n<p>Former BitMEX CEO Arthur Hayes suggested that Bitcoin might fall before and after the halving, which serves as a bullish catalyst in the medium term.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cost of mining Bitcoin using the Antminer S19 XP is expected to rise from $40,000 to $80,000 following the halving, according to Ki Young Ju, CEO of CryptoQuant. #Bitcoin mining costs are set to double by the end of the month after the halving, jumping from $40K to $80K for S19 XPs, commonly utilized [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1137,1150,1138],"class_list":["post-12390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-mining","tag-news-plus","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"34","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/12390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=12390"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/12390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/12389"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=12390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=12390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=12390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}