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This weekend’s figures indicate that bitcoin miners are nearing a critical threshold, with fewer than 25,000 blocks remaining before the anticipated halving event. Once this milestone is reached, bitcoin miners’ rewards for each block, excluding transaction fees, will decrease to 3.125 coins post-halving, a sharp drop from the current rate of 6.25 BTC per block. The bitcoin community is keenly observing these developments, yet miners bear the brunt, facing a significant cut in their income.
Bitcoin Halving to Slash Miner Rewards by 52.5%: A Critical Countdown Underway
Presently, the blockchain stands at block height 815,315, with roughly 24,685 blocks to go until the fourth subsidy epoch or reward halving. Projections vary on when exactly the halving will happen, with some pointing to April 20, 2024, and others to a slightly later date of April 24, 2024. Still, there are predictions setting the event even earlier, on March 23, 2024, as block intervals have been a great deal faster in recent times. For instance, current data shows the latest block interval was eight minutes and 8.4 seconds.
On November 3, Bob Burnett, the chairman and CEO of Barefoot Mining, clarified a common misconception about Bitcoin’s production rates. In a post on the social media platform X, Burnett wrote that the actual mean block time is shorter than the widely assumed ten minutes, resulting in more blocks per day than expected (146.7 instead of 144). Consequently, daily Bitcoin production is currently higher than the anticipated 900, sitting at 966 due to both block rewards and transaction fees.
Burnett states that with the upcoming halving event, while the block reward will be cut in half, the addition of fees means that the new daily production will decrease to only 507.6 Bitcoin, not the expected 450. This represents a reduction to 52.5% of the current output, which is a slight but materially different decrease from the anticipated 50%. These details are significant for miners and traders as they impact revenue forecasts and market liquidity.
“One final note is that I feel there is a decent chance that in the next epoch, fees will increase materially,” Burnett said. “If this comes to be then the daily bitcoin production number could increase considerably. I feel it is possible that by the end of the next epoch that fees may even rise to the level of the subsidy and returning to production of 900+ bitcoin per day is in play by 2027. If so, the mining business will roar,” the Barefoot mining CEO added.
Within the dynamic realm of the crypto economy, it’s bitcoin (BTC) miners who stand to face the most substantial consequence, and they are likely poring over figures as Burnett suggests. While speculators may indulge in conjecture, the halving is set to significantly diminish the earnings of bitcoin mining ventures. It is these types of precise calculations, coupled with the adoption of cutting-edge mining technology, that will dominate the strategic planning of every mining enterprise.
What do you think about Burnett’s calculations about the upcoming Bitcoin reward halving event? Share your thoughts and opinions about this subject in the comments section below.