In its most recent weekly newsletter, “The Week On-Chain,” analytics firm Glassnode spoke of potential issues for Bitcoin miners following the next block subsidy reduction. The business reported that hash rates are at record highs and that competition among Bitcoin miners is at an all-time high. Ordinal inscriptions are now assisting miners by generating income from unused blockspace. However, the percentage of money from fees is still low by historical standards, and since February, there has been a 50% rise in the amount of hashrate that is fighting for rewards.
According to Glassnode, the mining market as a whole may experience severe financial stress as a result of the impending halving in April 2024, which will see miner payouts per block decrease by 50%. The ‘manufacturing cost’ each bitcoin will double and reach $30,000, which is more than the current spot price. Some analysts, like Filbfilb, co-founder of the trading platform DecenTrader, are more upbeat about how miners would manage the lead-up to the halving and contend that miners will increase BTC stockpiling ahead of the event.
