The Bitcoin halving event, a pivotal occurrence, is scheduled for April, 19 2024.
This quadrennial event will reduce the block subsidy for Bitcoin miners from 6.25 BTC to 3.125 BTC, thereby halving the reward that miners receive for their efforts.
Such events have historically led to profound shifts in the mining landscape, potentially influencing various economic and operational facets of Bitcoin mining.
The Role of Custom ASIC Firmware Post-Halving To combat reduced profitability, miners are increasingly turning to custom ASIC firmware to improve the efficiency of their hardware.
For example, underclocking an S19 with custom firmware could extend its operational viability by reducing its power draw, thereby maintaining profitability even at lower hashprices.
Public miners, in particular, are adopting custom firmware to boost the efficiency of their fleets.
2024 Bitcoin Halving and Beyond The 2024 Bitcoin Halving is set to reshape the mining landscape significantly, just as previous halvings have.
For those in the Bitcoin mining industry, staying informed and adaptable will be key to leveraging the halving event as an opportunity rather than a setback.
An important event, the halving of Bitcoin, is set for April 19, 2024. The block subsidy for Bitcoin miners will be cut during this quadrennial event from 6 points25 BTC to 3 points125 BTC, halving the amount of money that miners will get paid for their work. Events of this nature have in the past caused significant changes in the mining environment, which may have an impact on different aspects of Bitcoin mining, both financially and operationally.
Market forecasts and the economic outlook.
Due to the decreased block subsidy following the halving, miner revenue immediately decreased significantly. As a result, less productive miners might become unprofitable and leave the network, which could cause the hashrate to drop. If the price of bitcoin stays at its current level, the Hashrate Index Research Team at Luxor predicts that between 3 and 7 percent of the hashrate may become offline. But, depending on the direction that Bitcoin prices and transaction fees take after the halving, up to 16 percent of the hashrate might become economically unfeasible.
To adapt to the new economic realities, the hashrate—a crucial component of Bitcoin security—may change in tandem with difficulty levels. Luxor’s analysis presents several scenarios in which the network’s hashrate, which reflects adjustments to the new earning potential following the halving, could end up ranging from 639 EH/s to 674 EH/s by year’s end.
Price and Breakeven Points for ASIC.
The mining reward will decrease after the halving, making the profitability of various ASIC models increasingly important. If the price of Bitcoin does not rise significantly, only the most productive machines will be able to make a profit due to lower rewards. As per Luxor’s predictions, the breakeven power costs of next-generation ASICs such as the S19 XP and M30S++, could vary between $0 and 15/kWh, contingent on the post-Halving hashprice.
Repricing of ASIC machines is probably in store as a result of this change in profitability. Because of the strong historical correlation between hashprice and ASIC prices, a decrease in hashprice is expected to cause a corresponding adjustment in ASIC values. This could hasten the phase-out of older, less efficient models from the market. It will especially affect them.
Post-Halving Function of Custom ASIC Firmware.
Miners are increasingly using custom ASIC firmware to increase the hardware’s efficiency in an effort to combat declining profitability. Machine performance can be improved by firmware such as LuxOS and BraiinsOS, which optimizes the machine’s power consumption and hashrate output, thereby reducing the electricity breakeven point. In order to sustain profitability even at lower hashprices, an S19 could have its operational viability extended by lowering its power draw through custom firmware underclocking.
Custom firmware is being used by public miners in particular to increase fleet efficiency. Businesses with reports of improving their operational efficiencies through the use of custom solutions include CleanSpark and Marathon. As more miners look to maximize their output and cut expenses in the face of declining block rewards, this trend is predicted to continue.
The Bitcoin Halving of 2024 and Later.
Similar to how past halvings have altered the mining landscape, the 2024 Bitcoin Halving is expected to do the same. There’s no doubt that the event will bring opportunities and challenges, even though the precise results are unknown. Miners will be better equipped to handle the post-halving environment if they strategically plan, considering both operational efficiencies and economic forecasts. Making the most of the halving event as an opportunity rather than a setback will require those in the Bitcoin mining business to remain knowledgeable and flexible. Even in tightening economic conditions, miners can prosper with the correct preparations, especially in ASIC management and firmware optimization.
El Sultan Bitcoin is the guest author of this post. Statements made are fully their own and may not represent the views of Bitcoin Magazine or BTC Inc.
