Bitcoin miners are facing heightened competition due to record-high hash rates, making miner profitability increasingly challenging. While ordinal inscriptions help miners earn extra revenue by filling empty block space, profitability remains modest compared to historical levels.
The upcoming Bitcoin block subsidy halving in April 2024 is expected to have a significant impact on miner rewards per block. It will double the production cost per BTC, potentially putting many miners under financial strain.
Various models estimate that the most efficient miners currently have an acquisition price of around $15.1k per Bitcoin. However, post-halving, this cost is projected to double to $30.2k, posing substantial challenges for the mining industry.
Some analysts suggest that miners may increase their BTC accumulation in anticipation of the halving event to support higher prices.
It’s crucial to note that this information is not investment advice, and readers should conduct their research before making investment decisions.