Hands in the air if you’ve ever seen a love-hate relationship than between miners and the Bitcoin halvings. No Hands?
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Since the emergence and rise of Bitcoin; nothing is yet to instill jubilation in the ears of a degen than the upcoming Bitcoin Halving. Even for the degen who mines BTC, there is an appeal in the halving event. This is despite its ability to negate a huge percentage of miners’ profitability. YET, this has not stopped segments of the Bitcoin mining community from sitting back in fright in case their operations are ineffective to solve a block. The worried community comprises miners who are yet to figure out the economics of running GPU computation equipment, in an era where NVIDIA chips are doubling in price driven by huge demand from both blockchain and artificial intelligence markets.
Related: Bitcoin ETF Boom Continues Ahead of Halving Anniversary
A True Bitcoiner Will Trust the Process
On the other hand, we have more economically-savvy miners who have perfected their cost-benefits-risks analysis than Artificial Intelligence enterprises. This is the segment that has spent the last fifteen years mining, hodling, and maybe trading Bitcoin. They are comfortable spending more to purchase the latest Graphics Processing Units (GPUs), and they are good with the business. This is what their representative says, Mr. Kristian Csepcsar, the chief of Propaganda at Braiins:
The modern miner is a true Bitcoiner at heart, and they understand the true meaning of the halving event. For that, it cannot be taken away from them, and THEM from it. Bitcoin price falling below our cost of mining means nothing for those invested in the bigger feature.
He added, we embrace halvings “and cherish them” as miners.
One of the mining firms that has clearly exhibited resilience in seasons like the upcoming one is Hut 8. The CEO of the mining company Mr. Asher Genoot said the halving event is an opportunity for them to 2X their growth. Moreover, he was glad to add the secret behind his company’s strong balance sheet is the ability to mine only when it is profitable to do so. Hut 8 is currently managing a portfolio of 9,100 BTC using a combo of both mining and quality investments.
A Real Bitcoiner Puts Business First
Not everyone agrees with Hut 8. Some are like, “Tell them, fellas, they can keep their opinions for as long as they respect ours” These ones wish the halving event could be scrapped to make the business more stable. Situations like this one would prompt the reasoning of Peter Degen, you simply CANNOT live without halving if you are a true “Bitcoin Sympathiser” Nevertheless, even if they were to come together as miners to scrap off mining, that wouldn’t be possible because the network is controlled by node operators. And nothing could make an operator happier than Bitcoin doubling in price after the halving event. It is evident everyone is betting on the price of BTC, even amongst those facing the biggest risk in the wake of this year’s event on April 21st.
Surprisingly, the appeal of the halving event is not to be taken at face value as it represents a deeper and more sentimental attachment among those far opposed to splitting mining rewards in every four hours. The whitepaper does indicate the possibility of eliminating the event using a hard fork. However, reaching network consensus is nearly impossible like the chances of a camel entering the needle’s eye. (Yes it can happen because ‘The Book’ says so, but it’s nearly impossible).
If you are the Real Bitcoiner, Please Stand Up!
In the case it happens that miners eliminate the event by consensus (which is 0.99% possible), Bitcoin would never be the same again. Technically, Bitcoin as we know it would be lost forever, and we would have a far different by-product. The features that a true Bitcoiner appreciates. Someone like Kristian Csepcsar believes Bitcoin must have less supply inflation compared to gold, and must always proceed with its deflationary mechanisms.
A more controversial statement is that of one of Mellerud from Hashlabs Mining. According to him, Bitcoin’s market capitalization would have been much smaller if the event never existed. This would make it more unprofitable for miners compared to now when they are reaping profits left, right, and center.
For Csepcsar, you shouldn’t even be thinking about impossible worries like eliminating the halving. To him, a network implementation of such magnitude is virtually impossible even in the 10 years Bitcoin has existed. What would make it possible 10 or 20 years from now?
If the block reward for Bitcoin were to be split today, BTC would have to pump upwards and test $80,000 for miners to be profitable. The event is often associated with unsustainable costs for operations, high electricity rates, surging overhead costs, and inefficient ASICs. However, the halving is also termed as an economic catalyst for continuous improvement of the network’s efficiency. This is why the event has historically been associated with new all-time highs, and general market bullish sentiments.
More Info:
- Ethereum’s Delayed Bull Run Largely Depends on ETF Approval
- What Does Spot Bitcoin ETF Mean for Investors?
If sentiments are anything to go by, for now, focus on the fundamentals, the bullish market, and the future but for earth’s sake, stop betting on dramatic changes like altering Bitcoin’s 21M cap or eliminating the BTC halving event.
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