Bitcoin Mining Cost Estimated at $48,671 Per Coin After Recent Halving
Bitcoin's recent halving has led to notable changes in mining dynamics and profitability:
- Current Bitcoin price is $88,500, up 36% since the halving and 130% compared to the last cycle's average price.
- Increased prices have attracted more miners, driving the total hash rate to all-time highs and making mining more difficult.
- Mining difficulty is five times higher than in April 2021 and 40% above pre-halving levels.
- Cambridge estimates the cost to mine one BTC at $48,671.
- Marathon, a major mining company, reported costs of $21,500 per BTC before the halving and increased to $43,270 post-halving, with potential profits reaching nearly $29,000.
- Over 98% of miner revenue still stems from block subsidies despite rising transaction volumes.
- Bitcoin processes over 11.5 million transactions monthly, translating to an average volume of $1.8 trillion.
Future halvings could challenge current revenue models, requiring discussions on Bitcoin’s fee market structure as dependency on block rewards diminishes.