BDFL of Quilibrium, Eng @ Farcaster, ex-Coinbase, always opinionated, never hydrated

/quilibrium

if market price is more than 2x of bitcoin miners revenue when it's typically tied together (or lower than bitcoin miner revenue), what made it change though? what is affecting this

building reel.farm and farcasterstudio.com

consider that historically it's been a leading indicator. this fact likely has not changed.

The Bitcoin halving, which happened in April.

Miner revenue is calculated by multiplying block rewards and tx fees (in BTC) by BTC price. The majority of revenue still comes from block rewards as opposed to fees. So when block rewards halved in April, miner revenue dropped by almost half. 

Since the halving is a predictable event, most serious miners were prepared and planned ahead. Therefore you won’t see an immediate 50% drop in hash rate even though revenue is down. 

It’s a definite concern in the long term security of the network (over the next few decades) but not really much of a concern in the short term.