Bitcoin block reward miners generated 6063 new tokens but sold 6,945 BTC between May 26 and June 2. This indicates that BTC block reward miners believe the fiat they receive from the sale of their BTC is more valuable than holding the coin. It also sheds light on what BTC block reward miners believe about the short-term future of the BTC network and BTC’s future value.
Small bitcoin miners find it tough to make profits post halvening.
After the bitcoin halvening took place on May 12, several bitcoin miners have found it very difficult to maintain profits, especially individuals who mined bitcoin on small scale operations. The block reward after the halvening decreased from 12.5 BTC per block to 6.25 BTC per block, which made it impossible for a lot of them to stay cash-flow positive. For most block reward miners to make profits and stay cash-flow positive, they would need better equipment, cheaper electricity, or increased BTC prices. With the ongoing pandemic, the miners have also not received the latest mining equipment.
BTC block reward miners are shifting to BSV.
BTC block reward miners are increasingly becoming interested in processing transactions on Bitcoin SV. BTC miners rely on the block reward and not the actual use, and utility taking place within BTC to fill blocks with transaction fees is the primary reason why BTC miners are shifting to the BSV network. The block reward for bitcoin will continue to be half every four years, and more and more BTC block reward miners will stop supporting the BTC network because they can no longer stay cash-flow positive. The price of bitcoin also plays a major role in the profits of block reward miners, and since the halvening, the price of the leading cryptocurrency has remained stagnant. Sichuan authority has ordered to shutdown crypto mining activities in the region.