Miners Hard at Work To Keep Bitcoin Above $6.5k

The volatility of Bitcoin over the past few years has been nothing short of astounding. We’ve seen the lows of December 2018 and the highs od December 2017. Today, we are seeing what some people predict to be the start of the next bull run as the Bitcoin price has just recovered from its drop below $10k and is now trading at around $10.5k at the time of writing. 

Some investors are very bullish on the leading cryptocurrency with some saying that a return to $20k could happen by the end of the year as the network block reward halving gets ever so closer.

With this happening, Bitcoin miners are concerned about the crypto’s base value relative to the block reward. From a business point of view, the base market value of Bitcoin should be higher than the cost of operation for miners to profit.

Into two

The bitcoin network undergoes a block reward halving where the earnings given out for every mined block are split into two. So at the minute, the reward would be 12.5 Bitcoins. After the halving set for May next year, that figure will go down to 6.25 Bitcoin, meaning that miners will now get fewer earnings from their mining activities unless the price per coin increases accordingly. 

So with this, miners are working hard to muster up further demand for the flagship cryptocurrency. This is in the hopes that it will see the price surge up for the current earning to level up with the lessened reward. As reported by ZyCrypto, “analysts indicate that miners have been contracting their Bitcoin sales even before the mining happens. That has had the effect of increasing the crypto’s demand and price.”

The Base Cost

According to one analyst, who goes under the name ‘Filb Filb’, miners are driving to increase the base cost for Bitcoin as well as keeping it above the $6.5k level and are working hard to make sure it doesn't go below said level. So in this sense, the block reward value will be kept intact even after the halving.