Giga Energy Expanding to Argentina to Utilize Waste Energy in Mining Bitcoin

Riot Platforms Says Bitcoin Halving Might Not Favor Miners

As the world awaits 2024 Bitcoin halving key industry players have demonstrated divided opinions concerning its impact on the crypto industry. In a recent report, the Colorado-based Bitcoin mining company Riot Platforms expressed pessimism concerning the upcoming BTC halving.

As earlier projected market leaders believed that the 2024 Bitcoin halving will bring a positive outcome to the crypto industry. They envision that after the Bitcoin halving, crypto firms will yield high returns.

Benefits of Bitcoin Halving

Shockingly, the Riot Platforms were skeptical that returns from crypto mining would increase after the Bitcoin halving. Reviewing the past performance of Bitcoin, the Riot official admitted that from 2020, BTC is ready for the halving.

The official expected that the rewards for crypto mining would reduce by nearly half during the Bitcoin halving. The executive cautioned the investors not to be over-excited about the upcoming BTC halving.

In the past, after Bitcoin halved the price of the world’s largest crypto assets, BTC gained an upward trajectory, increasing the investor’s value. Based on the Riot team analysis, the 2024 Bitcoin halving does not guarantee the investor that the mining rewards will grow or not.

The Riot team projects that the returns generated from crypto mining activities might decrease after the halving. The Bitcoin miners argued that if the revenue decreases after the 2024 BTC halving, the operation of most mining companies will be significantly affected.

The Riot team lamented that a decrease in revenue would hurt the company’s operations and its financial position. The Riot team explained that the Bitcoin halving involves solving a complex cryptographic puzzle to generate a block reward.

Miners Prepare for Bitcoin Halving

Occasionally, the Bitcoin halving process consumes a large amount of electricity, forcing the miners to explore alternative energy sources. The Riot team argued that increased electricity demand increases operational costs for crypto mining.

In an interview with the chief executive of DLC. Link Aki Balogh lamented that the surge in electricity costs has undermined the miners’ ability to maximize profits. The CEO expected that the upcoming Bitcoin halving would require double the amount of electricity to create a block reward.

He argued that the Bitcoin halving will reduce the profit of the Bitcoin miners. Balogh’s statement received mixed reactions from Bitcoin miners. In a separate report, Bitcoin miners expressed their concerns that the profit margin will continue to decrease.

The troubled miners lamented that mining companies with ineffective and old-fashioned machinery will be disadvantaged if the revenue reduces after the Bitcoin halving. A statement from the co-founder of Aleph Zero, Matthew Niemerg, demonstrated that the upcoming Bitcoin halving will not favor the miners with old-fashioned ASICs.

Fierce Competition in Crypto Mining

The executive argued that miners with advanced mining tools and the latest ASIC model will take advantage of the 2024 Bitcoin halving. Mr. Niemerg encouraged the miners with old mining models to consider winding down this unprofitable machine before the approaching Bitcoin halving.

Lately, the desire to maximize profits compelled renowned Bitcoin miners to invest in acquiring new mining rigs and increasing hash rates.

Elsewhere, Greg Beard, the chief executive of Stronghold Digital Mining, stated that the fierce competition in the mining industry forced the miners to invest in increasing the hash rate.

The CEO noted that the installation of new mining rigs increased the hash rate by five times. Beard was delighted that the crypto community was optimistic about the approaching Bitcoin halving.

He noted that most Bitcoin miners focused on increasing the mining capabilities ahead of the halving. Compared to previous years, Bitcoin miners have demonstrated that improving mining efficiency was their top priority.

The CEO envisages the miners relying on low-energy sources will take advantage of the upcoming Bitcoin halving. In support of Beard’s remarks, the Riot team predicted that the global hash rate would continue increasing even after the halving. The Riot team noted a growing number of new entrants in the crypto sector.

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