Bitcoin miners may face significant challenges due to the upcoming halving event, according to a new report by analysts from banking and finance firm JP Morgan.

The report suggests that Bitcoin‘s price and transaction fees need to rise substantially to balance the reduced block reward.

Unsettling Times Ahead for Miners

The analysis predicts potential difficulties for Bitcoin miners as the hash rate, representing the computational power used to mine cryptocurrency, hits new highs. Factors such as fluctuating electricity costs and intensified competition among miners are expected to increase the cost of production.

The halving event, which takes place approximately every four years, will cut miners’ rewards by half. “The upcoming bitcoin halving event in April/May 2024 could be a stress test for Bitcoin miners,” states the report, co-authored by JP Morgan analyst Nikolaos Panigirtzoglou.

This event will lower the issuance rewards from 6.25 to 3.125 BTC, effectively reducing miners’ revenue while concurrently increasing Bitcoin’s production cost. The report explains that while Bitcoin halving typically has a positive impact o

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Author: Vince Dioquino

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