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Bitcoin miners feel the pressure of lower token rewards after halving, says Kaiko
Greater selling pressure in the cryptocurrency market is likely on the horizon as Bitcoin miners with large holdings in digital assets face a sharp drop in revenue, according to researcher Kaiko.
The main source of revenue for cryptocurrency mining companies like Digital marathon, Riot control platforms AND Cipher mining it was drastically reduced by a Bitcoin code update in late April. Called halving, such updates are pre-programmed into the blockchain to reduce the mining subsidy, a fixed amount of Bitcoin rewarded to miners for validating transaction data, by half every four years. The most recent halving, the fourth since 2012, reduced daily production from 900 tokens to 450, resulting in a revenue loss of approximately $10 billion per year based on the price at the time.