According to Bloomberg, Bitcoin miners are bracing for a significant drop in their revenue due to a forthcoming code update for the leading cryptocurrency. This update, known as the 'halving', is scheduled to occur later this week and will drastically cut the rewards miners receive for validating transactions on the blockchain.
Bitcoin mining is a process that requires substantial energy, where miners use specialized computers to validate transactions on the blockchain. In return, they earn a reward in the form of Bitcoin tokens. This reward, which constitutes the majority of mining revenue, is halved every four years due to a preprogrammed event known as the halving. The impending halving, the fourth since 2012, will decrease the Bitcoin reward from 900 to 450 tokens in daily production.
In the face of this challenge, miners are hoping for increased demand from new spot Exchange-Traded Funds (ETFs) to push Bitcoin prices higher and offset the negative impact of the halving. The digital asset has seen a surge since traditional asset management firms launched these ETFs in January. These funds have drawn billions of dollars from a broader range of investors, extending beyond the crypto-native communities.
However, predicting Bitcoin prices in the short term remains a challenge. 'I think it is very hard to predict Bitcoin prices on any kind of short-term time frame. But over the course of years, I think you have seen a steady course of adoption,' said an unidentified source.
