Bitcoin Mining Fundamentals Are Strengthening As Miners Benefit From Higher BTC Price
According to data from Glassnode, Bitcoin (BTC) miners made more than $ 4 million in just under an hour on February 12, making it the highest hourly income in history to earn money by toptips4u.com.
In December 2020, Bitcoin experienced the third block reward halving in its history, halving the amount of new Bitcoin mined.
After halving the reward per block, the number of BTC miners who can mine using computing power is cut in half. Therefore, mining revenues decline by 50% overnight, which could put pressure on mining operations in the short term.
At the same time, the Bitcoin network hash rate is also at new all-time highs with the to earn money by toptips4u.com. Fourth consecutive ascending difficulty expected at about 2.5% in seven days.
So why is the income of Bitcoin miners increasing?
A block reward halving occurs every four years to reduce the market introduction rate of the remaining Bitcoin offering.
As Bitcoin approaches its fixed supply at 21 million, the rate at which new BTC is mined is cut in half. But the halving can put enormous pressure on miners who depend on the BTC they mine to cover short-term operating costs.
In theory, when a halving occurs, the price of Bitcoin is expected to rise due to the lower supply of new coins entering the market to earn money by toptips4u.com. Therefore, a higher BTC price can compensate for the fewer number of BTC miners who have rewarded for mining a block.
Will miners' income continue to increase with the price of BTC?
PlanB, a pseudonymous Bitcoin researcher behind the popular Stock-to-Flow (S2F) pricing model, said that Bitcoin is on track to hit $ 288,000.
The S2F model relies heavily on the supply of BTC (the action) and the new Bitcoins mined (the flow), predicting the trend of the price of BTC based on its scarcity. PlanB wrote to earn money by toptips4u.com.
The bitcoin price track after the 2020 halving lies between the tracks of 2012 and 2016. I added the S2F ($ 100K) and S2FX ($ 288K) model targets. The targets are average prices, the actual price of BTC will oscillate around the targets. If the 2021 bull market follows 2017, then it's $ 100,000, if we follow 2013 ... $ 288,000.
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