Bitcoin miners are definitely the backbone of the crypto community as they help the network continue working. Thus, miners are paid with Bitcoin which are traded on the open market.
Halving is expected to occur once every four years, to control the volume of BTC injected into the market.
However, the next Bitcoin halving could result in a sort of coup among miners, Ambcrypto website reported, citing a recent study by Blockware Solutions.
The study showed that the mining network is divided into layers, based on the cost of electricity as the electricity dominates nearly 95 percent of the mining costs.
Currently, miners with lower electricity prices can achieve higher returns. Thus, the need to upgrade to modern mining rigs is not urgent.
“For Layers 1 & 2, the opportunity cost of Bitcoin/Balance Sheet depletion in exchange for a lower cost of production by upgrading their mining rigs is not favorable based on the present percentage of old mining equipment still on the network.”
The study concluded by stating: “Layers 1 & 2 will remain competitive with old mining rigs as long as other layers are using old mining rigs.”
It is worth mentioning that halving is one of the major events occupying the minds of crypto community currently, and it means slashing the rewards given to Bitcoin miners.
The process is mainly aimed at reducing the reward of miners and thus preventing the cryptocurrency from inflation.
It is very similar to what happens to gold. The more they mine gold, the more they deplete the mine.
Countdown
A total of 18.23 million coins have been mined, representing nearly 86.82% of the total number of Bitcoin to be ever produced, according to bitcoinblockhalf website.
Once 21 million coins are mined, the network will never produce anymore.
On the other hand, miners stopped mining new Ripples (XPR), and they currently trade one third of the available XPR and hold the remaining two thirds.
