Kintaro Blog
Executive Summary On May 11th 2020, Bitcoin went through its third halving. Right before the halving, Bitcoin’s hashrate was near its all time high levels of 136 Eh/s. Industry experts estimated that the cost of mining a bitcoin post halving would be $12000-$15000. But what we have observed is that it has become relatively cheaper to mine Bitcoin post halving due to: The difficulty drop and availability of cheaper electricity in Sichuan, China due to the rainy season. [caption id="attachment_8921" align="aligncenter" width="863"] Drop in Bitcoin’s Hashrate right after Halving (May 11th 2020) Source: Blockchain.com[/caption] …
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What is the Bitcoin Halving? As part of Bitcoin’s coin issuance, whenever a block is produced (~ every 10 minutes) a miner is rewarded with a certain amount of Bitcoins. This reward incentives miners to contribute to the bitcoin network infrastructure. Approximately every four years, or more accurately every 210,000 blocks, the block reward is halved. This is called the Bitcoin Halving. For the first four years of Bitcoins existence, 50 bitcoins were awarded to a miner for every block mined. The first bitcoin block reward halving happened in 2012, where the reward dropped to 25 Bitcoin. The second Bitcoin…
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