Half the rewards of Bitcoin will take place in less than 100 days

Research company TradeBlock has been trying to find “Bitcoin mining profitability by halving the reward.” In the blog post, TradeBlock analysts calculated the cost of mining Bitcoin before and after halving.

Their conclusions are that maintaining profitability will depend on an increase in the network hash rate and more efficient mining hardware.

Half of the Bitcoin rewards will take place in less than 100 days, scheduled to take place in May 2020. This means that the number of mined coins will be reduced from 12.5 per block to 6.25.

Currently, an average of 144 blocks per day are mined, resulting in 1,800 new BTCs per day. After halving, 900 new bitcoins will be mined per day.

In 2019, commercial mining operators were operating at “healthy profit margins”, as the BTC price increased throughout the year.

Half the rewards of Bitcoin increases the hash power of the network

Meanwhile, the hash rate of the network has continued to grow, reaching record values. But, as resources increase over time, so does mining efficiency and costs.

In order to maintain healthy profit margins for miners, an increasing hash rate is needed that corresponds to a rising Bitcoin price. More efficient mining devices are needed to reduce mining costs.

Currently, the average gross cost to mine a BTC is $ 6,851, while the Bitcoin price has exceeded the sale price of $ 10,000.

If the hash rate will continue to grow at the same rate over the next three months, and miners will use more efficient mining hardware, then halving the cost of mining a BTC would be $ 15,062, according to TradeBlock calculations.

TradeBlock says miners are “expecting the price of Bitcoin to rise to higher levels” of over $ 12,000 – $ 15,000 near the halving date.