Every four years, the Bitcoin network undergoes a dramatic event: The Halving.
For traders, it’s a reason to speculate on price. For miners at Gokby, it is a fundamental change to their business model.
What happens?
When Bitcoin started, the reward for finding a block was 50 BTC.
- 2012: Reduced to 25 BTC.
- 2016: Reduced to 12.5 BTC.
- 2020: Reduced to 6.25 BTC.
- 2024: Reduced to 3.125 BTC.
This is programmed into the code. It ensures Bitcoin remains scarce and inflation decreases over time.
The Immediate Impact
The moment the halving happens, your revenue in Bitcoin drops by exactly 50% overnight.
If you were mining 0.01 BTC per day on Monday, you will mine 0.005 BTC on Tuesday (assuming hashrate stays the same).
The Long-Term Effect (The Equilibrium)
This sounds scary, but the market usually adjusts:
- Inefficient Miners Quit: Miners with old hardware or expensive electricity become unprofitable and turn off their machines.
- Difficulty Drops: When miners quit, the network difficulty decreases, making it easier for the remaining miners (you!) to find blocks.
- Price Increases: Historically, the supply shock (fewer new Bitcoins) leads to a higher Bitcoin price in the 12-18 months following a halving.
How to Prepare
- Upgrade Early: Don't wait until the halving to buy efficient machines (like S21 or M60).
- Save Cash: Build a cash reserve to pay electricity bills during the months immediately after the halving, when profitability is lowest.
Conclusion
The Halving is not the end of mining; it is a cleansing fire. It separates the hobbyists from the professionals. If you survive the Halving, you are usually positioned for the bull run that follows.
