The majority of the Bitcoin miners are underwater, as the cost of mining per BTC is only lost for them.
As we know, the Bitcoin network completed the 4th Bitcoin halving event on 20 April 2024. Following the completion of Bitcoin halving, the block reward was reduced to 3.125 BTC from 6.25 BTC.
A report by Charles Edwards, founder of Capriole Investments, shared data on the Bitcoin mining cost and noted that the majority of the miners are paying $11,000 more to mine 1 BTC. It means if all the Bitcoin miners want to gain profit through mining operations then the trade price should be $77.5k+.
In this situation, Edwards thinks one out of three things should be done, to maintain cost-free or say economically sustainable mining operations.
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1) Price skyrockets
2) ~15% of miners shut down
3) Transaction fees remain a lot higher on average
Now it will be interesting to see what will happen next because all these things are showing only bullish signs for Bitcoin trade price & Bitcoin investors.
It is worth it to note that the high transaction fee of Bitcoin is a very big problem and no Bitcoin supporter, except Bitcoin miners, is willing to see it high for the long term.
PayPal to support sustainable Bitcoin mining
Recently giant digital banking platform PayPal announced its new initiative called “crypto-economic incentives” to push the adoption of carbon emission-free energy adoption by the Bitcoin miners.
Under this program, PayPal will give rewards to all those Bitcoin miners who will maintain their Bitcoin mining operations on renewable energy sources to mine Bitcoin.
With the help of this initiative, PayPal aimed to reduce Carbon emissions because of Bitcoin mining operations and also to stop carbon footprint concerns related to crypto mining activities.
Bitcoin price action
The current trade price of Bitcoin is $66,548 & this trade price is 65% higher over the last 90 days of the period.
Read also: Binance Executive to Stay in Nigerian Custody Until May 17 Bail Hearing
Bitcoin miners pay $11,000 per BTC more than the actual cost of 1 BTC: Will it impact Bitcoin price?
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