The term “halving” denotes the BTC price reduction by 50%. It’s scheduled to take place once every four years. The previous halvings took place in 2012, 2016, and 2020. In April 2024, the block reward falls to 3.125 BTC.
Stats After Each Halving – Bitcoin Price Always Grows!
This is based on the economic principle that scarcity increases value. Bitcoin has proved to be a reliable technology, a popular payment method, and an attractive investment option. More and more states recognize the advantages of regulating it instead of banning it. Both private and institutional users want to have Bitcoins. Logically enough, the lack of supply triggers price growth. The cost of BTC reaches such a level that allows it to balance the decreased number of coins mined.
Is It Too Late to Start Now?
Right before the halving of 2024, nearly 94% of all the Bitcoins that will ever be mined were already in circulation. In other words, approximately 19.65 million coins had been mined, and roughly 1.35 million were still to be mined.
Every halving poses a challenge to miners. They have to put more effort into gaining rewards. Yet it doesn’t mean mining becomes less profitable after halving. The main thing is to know how to adapt to new circumstances and opt for the most lucrative strategy. Keep on reading this article to find out what we mean!
What Are the Most Important Things After Halving?
Here are the three vital prerequisites to keep mining at a profit after halving:
- Minimization of expenses
- Cheap electricity
- Powerful equipment
Let’s have a closer look at them, one by one.
Minimization of Expenses
One of the possible ways of cutting down on costs is renting hashing power or mining hardware remotely.
It’s not by chance that the popularity of cloud mining technology has skyrocketed. You purchase a contract with the desired conditions on the provider’s website or in its app. In exchange for regular fixed payments from your side, the provider’s staff will take full care of your rig. You’ll be making a profit on the BTC price growth.
The other way around is to rent at ASIC remotely. You won’t need to maintain it or find a place to locate this noisy machine. It will be easy for you to select the rig with the desired parameters.
Cheap Electricity
A reliable provider can also grant you access to affordable energy. Such companies tend to place their facilities in special economic zones with optimal conditions for miners.
Let’s consider the well-known ECOS brand as an example. This provider is headquartered in the free economic zone in Armenia. The national government entirely approves of cryptocurrencies and blockchain technology. The residents of the zone are exempt from any taxes and customs duties for 25 years. The Hrazdan power station, situated close to the provider’s facilities, ensures a stable and cheap energy supply.
ECOS offers turnkey services for miners. You start by choosing an ASIC from a trustworthy manufacturer. The ECOS team will legally import it into the free economic zone, clear the customs, and take care of every step of the logistics. Your hardware will be placed in a safe location and there will be a 6-month warranty on it. Armed guards will be protecting the territory 24/7. The ECOS team will fine-tune the rig to ensure its maximum performance.
Skilled and knowledgeable staff will be responsible for your ASIC’s maintenance. If the machine breaks down, ECOS will repair it in their own service center. You won’t have to transport your miner anywhere and it will be able to get back to work very soon, generating income for you. The ECOS specialists can connect your ASIC to one of the best pools of your choice – such as BTC.com or ViaBTC.
To monitor the efficiency of mining, the ECOS professionals will rely on their custom performance management system. You’ll be able to access it through your user account.
Powerful Equipment
Last but not least, it’s essential to get an ASIC of the latest generation. Compared to their predecessors, the newest miners consume less power and boast a much higher hashrate. Such a combination can enable you to stay profitable after halving.
Let’s have a look at the profitability forecasts of Antminer S21. It’s the newest model in the product range of Bitmain, one of the global leaders in the ASIC manufacturing niche. The calculations depend on where you place your hardware, so let’s imagine it’s hosted at the Free Economic Zone of Armenia (ECOS). The assessment is based on post-halving FPPS (0,0000008 BTC per 1 TH per 24h). The costs of all hosting expenses have been considered in the forecast.
With the BTC rate hitting $120,000, it will be possible to gain $23,000 during the device’s lifetime:
With the BTC rate hitting $150,000, your gain will be able to reach $31,000:
The only shortcoming of the Antminer S21 is its price. One machine costs around $6,000. If you are not ready to pay this sum upfront, there are alternative ways of benefiting from it. As we said above, you can either rent it remotely or resort to cloud mining services. The above-mentioned ECOS provider supports both options.
To Sum It Up
When the Bitcoin reward decreases by 50% after halving, you can still make a profit on mining! To achieve this goal, strive to minimize your expenses, get access to cheap electricity, and leverage one or several ASICs of the latest generation. Even though the rewards will become more scarce, the cost of BTC will inevitably go up – and this will ensure your revenue.