Bitcoin is unimaginable without halving, which will halve the amount of mining rewards, and may provoke strong jumps in the exchange rate before and after the event.
Your profitability may temporarily decrease by more than 50%! What can you do?
- Don’t panic! It's temporary
- Look at the historical data
- Wait for a crazy soar
- Everything will be fine (or even perfect!)
Why is this happening?
After halving, the yield drops sharply, because now all miners receive half as many bitcoins for the same work (from 6.25 BTC to 3.125 BTC).
This means that each unit of mining power (hashrate), that is, each TH/s now brings less profit. But this is temporary!
Let's see what happened to the yield per terahash unit during the previous halving in 2020, when bitcoin rewards also halved from 12.50 BTC to 6.25 BTC per mined block:
The so-called Hashprice graph (daily income from 1 TH/s of mining power) shows that before halving on 11/05/2020, miners earned an average of $0.15 from 1 TH/s per day.
Then, as a result of halving, the yield dropped by more than 50% to $0.072/TH/s/DAY.
However, despite these temporary fluctuations, the hashprice then grew rapidly, reaching $0.4, and returned to its lows only three years later, after the FTX exchange collapse. During this time, miners earned so much that the apparent losses from halving in 2020 turned out to be nothing more than a statistical error.
2024 halving
Now we are in a situation that’s similar to 2020, when miner profitability is again approaching $0.15. History repeats itself, so do not worry if your profitability drops from 25% to 10% or even lower during the halving days.
First, everything will recover naturally as shown on the hashprice chart. One of the reasons is that after halving, many old miners become unprofitable and are turned off. This means that the total Bitcoin network hashrate, and therefore its difficulty, is reduced. The lower the difficulty, the higher the mining profitability, that is, the reverse process begins!
Secondly, due to the fact that mining hardware usually gets cheaper after halving, Minto will be able to replenish our mining fleet at the best prices. Today, the Customer Energy Efficiency (CEE) of the Minto Active Customer Hashrate (ACH) = 38.9 W/TH, and after halving, we will be able to bring our energy efficiency to 30 W/TH and below, that is, add another 30% to profitability!
Thus, the 40% profitability will return due to market factors (see hashprice) and our efforts to increase mining profitability (purchase of new energy-efficient miners).
Stay with Minto and don't worry about the temporary drop in your profitability.
How does Bitcoin's deflationary model work?
Since half as many bitcoins are mined after halving, it means that bitcoin supply on the market has decreased, and it will grow in price. This is called the deflationary model. It is embedded in the Bitcoin algorithm specifically so that its value only grows over time.
Let's see what happened after the previous halving on May 11, 2020:
On the halving day - 11/05/2020 - the bitcoin exchange rate dropped slightly to $8,200, and mining rewards fell by half. However, the miners did not stop working. As the bitcoin supply decreased, its price began to rise.
Over the next year and a half, the bitcoin exchange rate increased to $69,000, that is, more than 8-fold!
So is there any need to be afraid of halving and worry that revenues have fallen today?
No, don’t worry. We took a step back together with the market, and will now take 4 steps forward!
Why is the bitcoin exchange rate bouncing up and down?
Bitcoin is a market asset, and many players are nervous. But real money is earned by those with more patience and endurance.
Go back 4 years and imagine the losses of those who gave up bitcoin after the 2020 halving. Could anyone have imagined that in just a year and a half bitcoin would cost not 8, but 69 grand?
On March 1, 2024, bitcoin was already worth $63,000. History repeats itself, but at completely different levels. Don't miss the chance to add another zero to the value of your portfolio!
Minto is only investing in mining infrastructure!
Minto is expanding its mining fleet at every opportunity, because mining generates profits. We understand that as a result of halving, our profitability will drop by half, but is this really a reason to give up? In response to the drop in profitability, we will only double our efforts and buy more miners at discounted prices!
Our project is focused on the future, and halving is just one of the events along the way. The mining infrastructure that we are creating is able not only to survive the coldest crypto winter, but also to earn impressive profits for all $BTCMT holders in a growing market.
Halving shall pass, Bitcoin shall remain, and Minto shall continue to work and mine new bitcoins. $BTCMT is our main carrier of value, bringing in daily mining income. Take your time to get rid of $BTCMT, even if the yield has fallen today. It just means that tomorrow we will earn even more.
Stay with us to earn the most!
