‘No Guarantee’ Bitcoin Halving Will Be Favorable For Miners: Riot Platforms

One of the biggest Bitcoin mining facilitiesRiot Platforms warned that there is “no guarantee” for shares Halving Bitcoin It will have a positive effect on profitability.

Every four years, Bitcoin is programmed to “halve,” which cuts the reward in half by issuing new blocks to control inflation. Bitcoin is set for its next halving. Sometimes in April Assuming some assumptions that will happen Bitcoin price increase.

But Riot Platforms is cautioning investors against overdoing it.

“While the price of Bitcoin has historically increased around these halving events, there is no guarantee that the price change will be favorable or reduce mining rewards.” Riot spoke against him. 2023 Annual Report.

Riot added, “Our revenue from our Bitcoin mining operations will decrease, which could adversely affect our results of operations and financial condition.”

A miner must solve a complex cryptographic puzzle that requires a lot of electricity in order to get a block reward – one The biggest lasting criticism The blockchain's Work verification agreement method. The halving is believed to increase this demand for electricity, which increases costs.

Aki Baloh, co-founder and CEO of Bitcoin smart contract provider Aki Baloh, said: “Many miners are finding it impossible to remain profitable at current electricity prices. DLC.LinkHe told him Decrypt. “Halving basically doubles the amount of electricity to get the amount of bitcoin. The amount stays the same, but the mining profitability is halved.”

As a result, miners worry about profits. Experts are especially worried about the inefficient machines for low-level miners.

Mining with efficient operations – that is, low energy costs and the latest generation ASICsIt will continue to operate when previous generations of ACCs are unprofitable and may be shut down for economic reasons.” Matthew Niemerg, Co-Founder of Layer-1 Blockchain Network Aleph zeroHe told him Decrypt.

“How to prepare? Prepare to shut down useless machines,” he added.

Since The last half In the year In May 2020, more miners went live, increasing hashrate—a measure of how much computing power is being spent at any given time.

“With increased competition in the mining space, we've seen the rate of interest increase more than fivefold over the past half year,” said Greg Baird, CEO and chairman of the company. Strong digital miningHe told him Decrypt. “So while everyone is excited about the halving, we saw the fourth quarter of the mining economy as miners increased the capacity of their machines without increasing the value of Bitcoin.”

This means that now more than ever, mining efficiency is a huge priority.

“The halving will be very favorable for miners with low energy costs,” Beard explained. “Miners who can keep costs down are the miners who are set to win half when Bitcoin's price rises.”

Although experts predict that less efficient miners will shut down, Riot Platforms predicts that the global hashrate will continue to increase.

“As more mining companies enter the industry, we expect demand for the new bitcoin to increase,” Riot reports. “So as new and existing miners deploy more hashrate, the hashrate of the global network increases, which means that the miner's hashrate of the global network (and therefore the probability of receiving Bitcoin rewards) decreases.”

As miners seek more efficient alternatives, the industry may accelerate the shift in direction. Renewable energy To reduce energy costs or encourage innovation for new low-cost mining machines.

Edited by Andrew Hayward.