More than 30 days before the next halving of Bitcoin, Bitcoin mining is experiencing an important turning point. New data collected by The Block Research shows that in March, mining activities brought about $ 380.1 million in revenue to Bitcoin miners.
As shown in the chart below, this number has fallen by 25% compared to February. In the statistical process, this number is based on the assumption that miners sell immediately after receiving the Bitcoin mining reward, and the price of Bitcoin is based on the daily closing price of BTC.
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Source: CoinMarketCap, Coin Metric, The Block
As The Block analyst Larry Cermak pointed out in the March data summary, the vast majority of bitcoin miner income is obtained in the form of block reward subsidies. Currently, bitcoin block rewards are 12.5 per block BTC. If the block reward subsidy will be halved after the expected halving event next month, the number will be reduced to 6.25 BTC.
To put it simply, Bitcoin's rewards are halved every 210,000 blocks, about once every four years, and there have been two halvings in history, in 2012 and 2016, respectively. The total supply of Bitcoin is 21 million, and the next block height halved is 630,000, and the expected time is around May 14, 2020.
This will mean that the number of bitcoin rewards available to bitcoin miners will fall sharply. If the price of bitcoin cannot rise sharply, this means that miners ’dollar-denominated revenue will fall sharply.
In addition to receiving block rewards during bitcoin mining, bitcoin miners receive another transaction fee.
Transaction fees-paid by Bitcoin network users at the time of transaction-currently account for approximately 2.12% of the total revenue of miners.
As The Block previously reported, Bitcoin miners ’revenue in 2019 is estimated to be $ 5 billion. The figure of $ 5 billion has fallen from the level in 2018, when miners brought in $ 5.26 billion in revenue.
After the halving of bitcoin in May, the rewards of bitcoin that miners can receive will fall sharply. If you want to maintain the total revenue of 2020, the price of bitcoin must rise sharply compared with now.