Summary
The current bitcoin mining difficulty is at a record high, but it is expected to decrease after the halving, leading to a “miner exodus.” CoinShares predicts that the average cost of production per coin could stabilize at around $38,000 after the halving, due to the complex interplay between hardware and electricity costs, difficulty levels, and profitability for miners.
Key Points
1. The current bitcoin mining difficulty is at historic highs, with computing power increasing by over 100% in 2023.
2. CoinShares predicts a potential “miner exodus” after the halving, leading to a decrease in mining difficulty.
3. The average cost of production per coin could stabilize at around $38,000 post-halving, taking into account factors such as hardware and electricity costs, difficulty levels, and profitability for miners.