Bitcoin’s Back! Miners Strike Gold…Again?

Right, so, Bitcoin (BTC) mining bods apparently raked in a tidy $3.7 billion in the last quarter of ’24. That’s a 42% jump from the previous three months, which, let’s face it, is enough to make even a dwarf blush. And according to those clever clogs at Coin Metrics, they’re eyeing up similar piles of digital dosh—around $3.6 billion—in the first quarter of ’25. Fancy that! 💰

This sudden burst of income suggests that the poor blighters are finally getting their act together after the Bitcoin network’s “halving” back in April ’24. You know, when they cruelly chopped the mining rewards from a generous 6.25 BTC to a miserly 3.125 BTC per block. Halvings, being the predictable sort, happen every four years, like a particularly dull celestial event. 😴

“With nearly a year gone since Bitcoin’s 4th halving, the miners have somehow survived a period of, and I quote, ‘stabilization’,” Coin Metrics declared in their Q1 2025 Data Special report. “They’ve been adapting to reduced block rewards, tighter margins, and shifting operational dynamics.” Sounds awfully like hard work, doesn’t it? ⛏️

But hold your horses! This recovery, as reliable as a goblin promise, could be derailed if those pesky trade wars start throwing spanners in the works. Ben Yorke, VP of Ecosystem at WOO X (a Web3 whatsit), told CryptoMoon that things might not be all sunshine and digital lollipops.

“If semiconductor tariffs make a comeback, Bitcoin mining could get rather expensive,” Yorke warned. “This might consolidate power among the big boys and force the smaller operations to shut up shop.” Sounds like a right old mess, doesn’t it? 💣

Adapting after the halving (or: How to survive with half your beer money)

Bitcoin miners have been having a bit of a wobble in 2025, apparently. Declining cryptocurrency prices, like a mischievous gremlin, have been adding extra pressure to business models already stretched thin by the halving, according to a research note from JPMorgan (shared with CryptoMoon, no less). 📝

However, those miners with deep pockets (and a healthy sense of self-preservation) have managed to adapt, so Coin Metrics says. In fact, Bitcoin’s hashrate—the total computing power securing the network—hit record highs in January, according to CoinWarz. Someone’s been busy! 🧮

Common adjustments have included “upgrading to more energy efficient ASICs, and relocating to regions with cheaper and abundant renewable energy resources,” like Africa and Latin America. ASICs, for those not in the know, are specialized computer hardware used in Bitcoin mining. Basically, they’re the pointy sticks of the digital age. 💻

Additionally, “miners are also diversifying into AI data-center hosting as a way to expand revenue and repurpose existing infrastructure for high performance computing,” the report noted. For instance, Bitcoin miner Core Scientific has pledged a hefty 200 megaWatts of hardware capacity to support CoreWeave’s artificial intelligence thingamajigs. Fancy turning your gold mine into a thinking machine factory. 🤔

Sustaining mining incentives (or: Keeping the goblins happy)

According to Coin Metrics, more transaction activity on the Bitcoin network would help keep those economic incentives flowing to the miners after the halving. “Over time, increased participation from higher-value or more time-sensitive activity could help drive stronger fee revenue, supporting miner incentives as block rewards decline,” they said. Essentially, more people spending more money keeps the miners mining. 💰💰💰

However, for now, “[t]ransactions below $100 currently represent ~60% of Bitcoin’s total transaction count,” according to Coin Metrics. This is mainly because holders are treating Bitcoin as a buy-and-hold thingamabob, rather than using it to buy, say, a pint of grog down at the Mended Drum. 🍺

“Bitcoin’s supply velocity, measuring the ratio of adjusted transfer volume to its current supply (rate of turnover), has declined over time,” the report went on, “reinforcing the idea that BTC is increasingly hoarded rather than used to actually do anything.” So, less like money and more like dragon’s gold, then. 🐉

Read More

• FC Mobile 25 Hero Chronicles event Guide and Tips

• ARC PREDICTION. ARC cryptocurrency

• Bridgerton’s Simone Ashley and F1 Star Carlos Sainz Jr. Team Up for L’Oreal Ad in Paris

• Gangs of London shares first look at season 3 for 2025 release

• Top gainers and losers

• The White Lotus Season 4 release date, location, and more

• mo.co gears up monster-hunting experience with its Open Beta, now live for both Android and iOS

• Beast Games Season 2 release date and details

• Weak Hero Class 1 Ending Explained

• What is Venus Vacation Prism? – Dead or Alive Xtreme explained

2025-03-25 22:56