Bitcoin mining profitability is expected to remain stable even after the upcoming Bitcoin halving, according to Laurent Benayoun, the CEO of Acheron Trading. The halving, which is set to occur on April 19, will reduce block issuance rewards from 6.25 BTC to 3.125 BTC. In previous halvings, smaller mining firms were forced to shut down due to the decreased block rewards. However, Benayoun believes that this time will be different due to the increasing network fees boosted by Ordinals inscriptions and Bitcoin-native decentralized finance (BTCFi). Network fees are transaction fees paid to incentivize miners, and they have been on the rise. Currently, the average Bitcoin transaction fee is $4.88 per transaction, compared to $16.13 per transaction a month ago. Bitcoin transaction fees have increased by over 86% in the past year. Additionally, Joe Downie, the chief marketing officer of NiceHash, stated that Bitcoin mining companies would remain profitable as long as the Bitcoin price stays above $70,000. Despite a recent drop in price, Bitcoin is still trading below the $70,000 mark. Ultimately, a mining firm’s profitability depends on the quality and energy efficiency of its mining equipment. Thanks to the combination of Bitcoin’s price appreciation and increasing network fees, fewer mining firms are expected to go out of business compared to previous cycles.
Bitcoin mining profitability may not necessarily decrease as halving approaches in 10 days.