Cryptocurrency Bitcoin: 12th Anniversary of Halving, Supply Limitation, and Drastic Changes in Mining Environment

As Bitcoin, the largest cryptocurrency by market capitalization, approaches its 12th anniversary of the halving event, the mining environment is becoming more challenging than expected. The gradual reduction in block rewards and the rapid increase in mining difficulty are forcing a structural transformation in the cryptocurrency industry’s mining sector. Meanwhile, an improving market environment is encouraging minor companies to implement new strategies, revealing that the entire industry is at a complex crossroads.

The Final Stage of Mining Symbolized by the Remaining 1.2 Million BTC

As of late November 2024, approximately 19.8 million Bitcoins are in circulation, with only 1.2 million remaining to be mined toward the maximum supply of 21 million. This number may seem small at first glance, but the scarcity and market significance brought about by the fundamental principle of supply limit in cryptocurrencies are extremely important.

In the process of mining the remaining 1.2 million BTC, miners will need to spend more time and energy due to reward reductions and increasing mining difficulty. According to MinerStat data, the current mining difficulty has reached 102.3 trillion, having just surpassed the 100 trillion mark for the first time in early November. Difficulty adjustments are made approximately every two weeks, creating a competitive environment that reflects the entry and exit of miners.

Rapid Strategic Shifts Among Mining Companies

Even amid continued bullishness in the cryptocurrency market, the dual pressures of declining mining rewards and rising difficulty are forcing mining companies to reconsider their management strategies. According to CoinGecko, Bitcoin has risen 154% over the past year, with the current price around $89,340. However, CoinShares points out that profitability across the entire mining industry has been declining since the halving in April 2024.

In this context, major industry players like Marathon Digital are taking proactive cost-cutting measures, citing reduced mining efficiency after the halving. The company issued $250 million in convertible senior bonds in August to fund business expansion. Meanwhile, companies like Terawulf are considering strategic mergers due to declining profit margins, indicating ongoing industry restructuring. The adoption of artificial intelligence technology to improve mining efficiency is also a key strategic focus for several large firms.

Turning Point Toward Green Mining Revolution

The challenges faced by cryptocurrency mining are not limited to efficiency alone. Reducing energy consumption has also emerged as a critical management issue. El Salvador is focusing on developing alternative mining methods utilizing geothermal volcanic energy, serving as a pioneering example of the industry’s efforts to address environmental concerns.

Through these multifaceted approaches, the halving mechanism in cryptocurrencies is becoming more than just a reduction in mining rewards; it is acting as a catalyst for the industry’s structural evolution. Until the remaining 1.2 million BTC are fully mined, the interplay between miners’ ingenuity and market mechanisms will shape the sustainable development of the cryptocurrency blockchain industry.