The halving of Bitcoin is considered to be one of the approaching events of 2020 according to some bitcoin traders. It cuts the total mining reward into half for new blocks mined. Based on the history of BTC price, before or every after halving, its price increased by the amount times (10). This halving occurred every 2 years and after 2017 bull-run happened from previous halving, its original price then is between $1,000 per btc. Since 12btc is the current reward after new blocks is mined, now the reward will split to 6 btc. To think that mining bitcoin after this 2020 halving is profitable, well, you are wrong.
Let`s assume btc will drastically priced to 50K, (with every scarce` supply – possibly, it might be happen), to consider the cost of mining bitcoin; we need to think on energy sources as well as the number of rigs to be applied. That is to consistently make profit out of mining although reward has split into two. Mining bitcoin involves huge amount of energy and its implication, after all, these supply be mined will reflect in our environment; thus, we need alternative source which can suffice enough energy to mine bitcoin and still competitive although halving could reduce the possible income, as long as miners will keep in mining they will still get enough income from it. So to mine bitcoin as a means of income generating would be difficult.
Moreover, miners should not be complacent rather they must be prepared on this worst case scenario. Considering that it will not be as worse but for sure it will cut their profit. Not to speak on fix cost for every miner incurred, well, I could be tempted not to use my rigs for awhile longer. To be profitable we need to record possible income and those computers and mining rigs are assets. It should be income generating as income is higher than expenses. Revenue arises from the rewards after mining new blocks, POW or Proof of Work. Expenses may arise from electric bills, maintenance, building depreciations and other cost related to mining. That is to control expense outbreak to outweigh income rather than costs. Electric expense is one of the reasons why miners cannot sustain operations. It must be noted that there are other alternative ways to acquire energy and that is from natural ways. Solar panels although it will add new cost however, it is an investment to consider. Hydrogen energy and wind energy can reduce pollution caused by high computing powers of the mining rigs. Also, it can reduce energy consumption by up to 20%. Natural powers can be useful at times like this. It can somehow generate much help rather than to stand on what everyone already knew.
With the bitcoin halving, fix cost and halved rewards – for sure it will escalate supply scarcity to turn price even higher eyeing to 100,000 usd each bitcoin price.