Bitcoin Mining Economics Post-Halving
The April 2024 halving reduced Bitcoin's block reward from 6.25 to 3.125 BTC, significantly impacting miner economics. Mining difficulty has increased 5% since the event, while hash rate remains near all-time highs at 700 EH/s. Public miners have responded by upgrading equipment and securing low-cost power contracts, with average production costs now around $45,000 per BTC. Interestingly, transaction fees now account for 18% of miner revenue, up from just 6% pre-halving, driven by Ordinals inscriptions and Layer 2 settlements. This diversification of revenue sources has helped offset the reduced block reward. Market analysts suggest that the halving's full supply impact typically manifests 12-18 months later, potentially setting the stage for a late 2024/early 2025 bull run as new supply becomes increasingly scarce.