BITCOINS HALVING INCENTIVIZES MINERS TO SELL FOR DOUBLE, DECRED CO-FOUNDER SAYS

The upcoming Bitcoin halving, a pivotal event in the cryptocurrency's lifecycle, is generating considerable discussion about its potential impact on market dynamics. Miners costs are effectively fixed, so to maintain the same profit margins, they are incentivized to double the price at which they sell their Bitcoin. I expect this supply shock will drive the Bitcoin price up by moving offers from miners up substantially. Bitcoin approaches its third halvingScheduled to occur approximately every four years, the halving slashes the reward miners receive for validating transactions and securing the Bitcoin network by 50%. Past bitcoin halving events have been followed by bitcoin bull runs to new all-time highs. Miners could boost revenue via higher transaction fee on Ordinals and Layer 2 transactions. SomeThis reduction in newly minted Bitcoin has historically been associated with significant price appreciation, fueled by the basic economic principle of scarcity.Decred co-founder, Jake Yocom-Piatt, believes this halving could trigger a doubling of Bitcoin's price as miners adjust their selling strategies to compensate for reduced rewards. Miners receive bitcoins, known as block rewards, for verifying and validating transactions and helping keep the blockchain network secure. The miners who receive them can then hold, trade orThe logic is straightforward: with their income effectively halved, miners may be incentivized to sell their Bitcoin at a higher price to maintain profitability and cover operational costs, which include energy, hardware, and infrastructure.This potential shift in miner behavior, coupled with the increasing demand for Bitcoin, could create a supply shock, potentially driving the price upwards. ผู้ร่วมก่อตั้งของ Decred คิดว่าการ Halving ของ Bitcoin อาจทำให้ราคาเพิ่มขึ้นเป็นสองเท่าเพื่อครอบคลุมต้นทุนของนักขุด เนื่องจาก Halving ของ BitcoinBut are these predictions realistic, and what other factors are at play? With low fees and over 400 cryptocurrencies to trade, Binance is the preferred exchange to trade Bitcoin, Altcoins, and other virtual assets. With Binance users can: Trade hundreds of cryptocurrencies on Spot, Margin, and Futures markets. Buy and sell cryptocurrencies with Binance P2P. Earn interest on your crypto with Binance Earn.The complexities surrounding miner economics, market speculation, and technological advancements all contribute to the unfolding narrative of the Bitcoin halving and its potential implications for the future of cryptocurrency.

Understanding the Bitcoin Halving and its Impact on Miners

The Bitcoin halving is a pre-programmed event embedded in Bitcoin's code, occurring roughly every four years, or after every 210,000 blocks are mined.This event reduces the block reward given to miners by half. Decred s co-founder thinks Bitcoin s halving could double its price as miners look to cover the costs of their work. Decred co-founder and project lead Jake Yocom-Piatt predicts that the coming reduction in Bitcoin s (BTCInitially, the reward was 50 BTC per block.After the first halving, it became 25 BTC, then 12.5 BTC, and currently stands at 6.25 BTC.The next halving will reduce it to 3.125 BTC.

Why does the Halving happen?

The halving mechanism is designed to control the supply of Bitcoin and ensure its scarcity. Typically, miners realize profits ahead of a halving event to cover operational costs and prepare for future investments. Halvings are periodic events where the block rewards on the Bitcoin network are cut exactly in half permanently.Bitcoin has a fixed supply of 21 million coins. Decred co-founder and project lead Jake Yocom-Piatt predicts that the coming reduction in Bitcoin s mining payout will have miners upping prices. Since the Bitcoin halving means that miners will receive half as many Bitcoins for the same amount of work, this doubles the unforgeable costliness of creating Bitcoin, Yocom-Piatt told Cointelegraph in a May 1 email, adding:By reducing the rate at which new coins are introduced into the market, the halving aims to prevent inflation and maintain the digital asset's long-term value.This scarcity is a key element of Bitcoin's value proposition, differentiating it from traditional fiat currencies, which can be printed at will by central banks.

How does the Halving affect Bitcoin miners?

The immediate impact of the halving is a direct reduction in the revenue miners receive for their work. The stock-to-flow ratio is increasing substantially as a result of the halving, so that is good for the longer-term price of Bitcoin, Yocom-Piatt added. Bitcoin s stock-to-flow model, a product of Twitter crypto analyst PlanB, compares Bitcoin s supply with its value, taking halvings into consideration.Miners play a crucial role in the Bitcoin network.They validate transactions, add new blocks to the blockchain, and secure the network against attacks. Decred's co-founder thinks Bitcoin's halving could double its price as miners look to cover the costs of their work. Bitcoin Mining Halving Cryptocurrency MarketIn return for their efforts, they are rewarded with newly minted Bitcoin (the block reward) and transaction fees.

With the block reward slashed in half, miners face a significant challenge to maintain their profitability. Bitcoin aproxima-se do halving. Aproximadamente a cada quatro anos, o Bitcoin conclui um halving com base em par metros incorporados em seu c digo. Cada halving reduz pela metade a recompensa do bloco de minera o do Bitcoin. O Bitcoin tem uma oferta m xima de 21 milh es de moedas, embora nem todas essas moedas ainda estejam em circula o.Their operational costs, including electricity, hardware maintenance, and cooling, remain relatively fixed.Therefore, they need to find ways to compensate for the reduced revenue. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.This is where the potential for increased Bitcoin prices comes into play.

Decred Co-Founder's Prediction: Miners Selling for Double

Jake Yocom-Piatt, the co-founder of Decred, a cryptocurrency focused on governance and security, has voiced his opinion that the Bitcoin halving could incentivize miners to sell their Bitcoin at double the price to maintain their profit margins.His argument centers around the economic realities faced by miners.

As Yocom-Piatt explained to Cointelegraph in a 2025 interview (as archived by cach3.com), the halving effectively doubles the ""unforgeable costliness"" of creating Bitcoin.Since miners’ costs are generally fixed, in order to maintain the same profit margins, miners are incentivized to double the price at which they sell their Bitcoin.

This perspective highlights a crucial aspect of the Bitcoin ecosystem: the close relationship between miner behavior and Bitcoin's price.If a significant portion of miners adopt this strategy, it could indeed create a supply shock, leading to a substantial price increase.

Exploring Potential Strategies for Miners Post-Halving

Miners aren't solely reliant on selling Bitcoin to survive post-halving.They have several strategies they can employ to mitigate the impact of reduced block rewards and maintain profitability.Here are a few:

• Increasing Transaction Fees: Miners collect transaction fees in addition to the block reward. p Decred's co-founder thinks Bitcoin's halving could double its price as miners look to cover the costs of their work. /p Bitcoin's Halving Incentivizes Miners to Sell for Double, Decred CoIf demand for Bitcoin transactions increases, miners can prioritize transactions with higher fees, boosting their revenue.The rise of Ordinals and Layer 2 solutions like the Lightning Network, which create more demand for on-chain transactions, could help in this regard.
• Improving Mining Efficiency: One of the most effective strategies for miners is to improve their operational efficiency. The next Bitcoin halving is expected in 2025 and may cut block rewards to 1.5625 BTC. Discover why this key crypto event impacts scarcity, price trends, and investor strategy. Bitcoin halving impacts miners, investors, and the wider crypto market. It reduces the rate at which new Bitcoins are minedThis involves using more energy-efficient mining hardware, optimizing cooling systems, and sourcing cheaper electricity. The bitcoin halving incentivizes miners to use more energy-efficient computing systems, says the CEO of Marathon Digital, as miners need to operate at a loweMarathon Digital's CEO has noted how halvings incentivize the use of more energy-efficient systems.
• Joining Mining Pools: Mining pools allow smaller miners to combine their computing power and increase their chances of finding a block. Aproximadamente cada cuatro a os, Bitcoin completa un evento de reducci n a la mitad basado en los par metros incorporados en su c digo. Cada halving reduce la recompensa por bloque de Bitcoin minado a la mitad. Bitcoin tiene un suministro m ximo de 21 millones de monedas, aunque no todas esas monedas est n en circulaci n todav a.Rewards are then distributed proportionally to the contributed hash rate. Mining companies are bracing for a 50 per cent drop to the financial rewards they earn in exchange for securing and validating transactions on the bitcoin network. In the next 24 hours or soJoining a pool provides a more stable and predictable income stream.
• Hodling (Holding) Bitcoin: Some miners may choose to hold onto their Bitcoin, anticipating further price increases in the future. BTCUSD Bitcoin Bitcoin's Halving Incentivizes Miners to Sell for Double, Decred Co-Founder Says. Decred's co-founder thinks Bitcoin's halving could double its price as miners look to cover theThis strategy is based on the historical trend of Bitcoin bull runs following halving events.
• Diversifying Revenue Streams: Some mining companies are exploring diversification into other areas of the cryptocurrency ecosystem, such as staking, lending, or providing infrastructure services.

Historical Trends: Bitcoin Halvings and Price Performance

Looking back at Bitcoin's history, past halving events have been followed by significant bull runs.This has led many to believe that the halving is a bullish catalyst for Bitcoin.

• First Halving (November 2012): The block reward was reduced from 50 BTC to 25 BTC.In the year following the halving, Bitcoin's price increased from around $12 to over $1,000.
• Second Halving (July 2016): The block reward was reduced from 25 BTC to 12.5 BTC. 11 likes, 0 comments - wallstreetlogyc on Ap: $BTC.X The bitcoin halving incentivizes miners to use more energy-efficient computing systems, says the CEOBitcoin's price rose from around $650 to nearly $20,000 in the subsequent 18 months.
• Third Halving (May 2020): The block reward was reduced from 12.5 BTC to 6.25 BTC. The bitcoin halving incentivizes miners to use more energy-efficient computing systems, says the CEO of Marathon Digital, as miners need to operate at a lower cost to drive profit after the revenueBitcoin's price increased from around $9,000 to over $69,000 within a year and a half.

While past performance is not indicative of future results, these historical trends provide some context for understanding the potential impact of the upcoming halving.The increasing scarcity of Bitcoin, combined with growing institutional adoption and mainstream interest, could create a favorable environment for further price appreciation.

The Role of Market Sentiment and Speculation

Beyond the fundamental economics of the halving, market sentiment and speculation also play a significant role in shaping Bitcoin's price.The anticipation of the halving often leads to increased buying pressure as investors expect the price to rise.This ""buy the rumor, sell the news"" phenomenon can further amplify price movements.

The Bitcoin stock-to-flow (S2F) model, popularized by the pseudonymous analyst PlanB, attempts to quantify the impact of scarcity on Bitcoin's price. Bitcoin 39;s Halving Incentivizes Miners to Sell for Double, Decred Co-Founder Says Decred co-founder and project lead Jake Yocom-Piatt predicts that the comingThe S2F model compares the existing supply of Bitcoin (stock) to the rate at which new coins are being produced (flow). As Bitcoin continues to pick up mainstream traction, the asset's blockchain scalability remains an issue, according to Decred co-founder Jake Yocom-Piatt. There is enough demand for on-chainAs the halving reduces the flow of new Bitcoin, the S2F ratio increases, theoretically leading to a higher price.While this model has its critics, it has gained considerable traction in the cryptocurrency community and influences market sentiment.

Challenges and Risks for Miners

Despite the potential for increased prices, Bitcoin miners face significant challenges and risks, especially in the aftermath of the halving.

• Increased Competition: The Bitcoin mining industry is highly competitive.As the price of Bitcoin increases, more miners are drawn to the network, increasing the difficulty of mining and reducing the profitability for individual miners.
• High Energy Costs: Bitcoin mining is an energy-intensive process. Anche Jake Yocom-Piatt, cofondatore e responsabile del progetto Decred, del parere che in seguito all'halving di Bitcoin (BTC) assisteremo ad un notevole incremento del prezzo della criptovaluta. In un recente scambio di e-mail con la redazione di Cointelegraph, Yocom-Piatt ha commentatoMiners in regions with high electricity costs may struggle to remain profitable, especially after the halving.
• Regulatory Uncertainty: The regulatory landscape for cryptocurrency mining is still evolving.Changes in regulations, such as increased taxes or restrictions on mining operations, could negatively impact the industry.
• Hardware Obsolescence: Mining hardware becomes obsolete over time as newer, more efficient equipment is developed.Miners need to continually invest in upgrading their hardware to remain competitive.
• Black Swan Events: Unforeseen events, such as a major security breach or a significant regulatory crackdown, could negatively impact Bitcoin's price and the profitability of mining.

The Impact of Ordinals and Layer 2 Solutions

Emerging technologies like Bitcoin Ordinals and Layer 2 scaling solutions are also influencing the Bitcoin mining landscape.These innovations can potentially increase transaction fees and improve the overall utility of the Bitcoin network.

What are Bitcoin Ordinals?

Bitcoin Ordinals allow users to inscribe data, such as images, text, or videos, directly onto individual satoshis (the smallest unit of Bitcoin). Bitcoin's halving in April could force crypto miners to sell some tokens, Kaiko Research reported. The event has left miners with fewer rewards while operating costs remain high. TheseThis has led to the creation of Bitcoin NFTs, which have sparked both excitement and controversy within the Bitcoin community.While some see Ordinals as a valuable new use case for Bitcoin, others worry that they are clogging the network and driving up transaction fees.

What are Layer 2 Solutions?

Layer 2 scaling solutions, such as the Lightning Network, are designed to improve the speed and scalability of Bitcoin transactions. Decred's co-founder thinks Bitcoin's halving could double its price as miners look to cover the costs of their work. Decred co-founder and project lead Jake Yocom-Piatt predicts that the coming reduction in Bitcoin's (BTC) mining payout will have miners upping prices. Since the Bitcoin halving means that miners will receive half as many Bitcoins for the same MoreThese solutions allow users to conduct transactions off-chain, reducing the load on the main Bitcoin blockchain.While Layer 2 transactions themselves don't directly generate fees for miners, they contribute to the overall demand for Bitcoin and can indirectly lead to higher on-chain transaction fees. ディークレッド(Decred)共同創業者のジェイク・ヨコムピアット氏は来週に予定されている仮想通貨（暗号資産）ビットコインの半減期は、マイナー達にビットコインを2倍で売るインセンティブを与え、価格上昇につながると指摘した。As Bitcoin adoption increases, so will the demand for blockspace, ensuring miners have a revenue stream outside of block rewards.

What Can Investors Expect After the Halving?

Predicting the future price of Bitcoin with certainty is impossible. Decred's co-founder thinks Bitcoin's halving could cause a doubling in its price as miners look to cover their costs and work. Please note, this is a STATIC archive of website cointelegraph.com from October 2025, cach3.com does not collect or store any user information, there is no phishing involved.However, investors can take a few key factors into consideration as they assess the potential impact of the halving. Decred s co-founder thinks Bitcoin s halving could double its price as miners look to cover the costs of their work. Bitcoin's Halving Incentivizes Miners to Sell for Double, Decred Co-Founder Says - InstaCoin.NewsThese factors include the historical performance of Bitcoin after previous halvings, the current macroeconomic environment, the level of institutional adoption, and the overall sentiment in the cryptocurrency market.

It's important to remember that Bitcoin is a volatile asset, and its price can be influenced by a wide range of factors. Der Decred-Mitbegr nder glaubt, dass die Bitcoin-Halbierung den Kurs um das doppelte steigen lassen k nnte, da Miner ihre Kosten decken wollen. Bitcoin-Halving: Miner werden zum doppelten Preis verkaufenInvestors should conduct thorough research, understand the risks involved, and invest only what they can afford to lose.It's also critical to diversify one's portfolio and not put all eggs into the Bitcoin basket.

Debunking Common Halving Myths

With so much attention on the halving, misinformation is bound to spread.Here are some common myths to address:

Myth: The Halving Guarantees a Price Increase

Reality: While historical data suggests a positive correlation between halvings and price increases, it's not a guarantee.Market conditions, macroeconomic factors, and investor sentiment all play a role.Treat any predictions with caution.

Myth: All Miners Will Immediately Sell at Double the Price

Reality: This is unlikely.Miners will adopt varied strategies based on their financial situations, operational efficiencies, and risk tolerance.Some may hold, some may sell, and others may try to optimize their operations.

Myth: Mining Will Become Unprofitable After the Halving

Reality: While less profitable for some, mining won't cease.The difficulty adjustment automatically adjusts mining difficulty based on the total hash rate.If less efficient miners drop out, the difficulty decreases, making it more profitable for those remaining.

Key Takeaways and Future Outlook

The Bitcoin halving is a significant event that has historically been associated with price appreciation.Decred co-founder Jake Yocom-Piatt's prediction that miners may be incentivized to sell their Bitcoin at double the price to maintain profitability highlights the potential for a supply shock.However, the actual impact of the halving will depend on a complex interplay of factors, including miner behavior, market sentiment, technological advancements, and regulatory developments.Investors should approach the halving with caution, conduct thorough research, and understand the risks involved.

In conclusion, the Bitcoin halving is a reminder of the inherent scarcity built into Bitcoin's design and a potential catalyst for further growth and adoption.By understanding the dynamics at play, investors can make informed decisions and navigate the evolving landscape of cryptocurrency.The halving is an integral part of Bitcoin's code, designed to bring scarcity to the currency.By incentivizing miners to sell for potentially double to cover costs, the reduction in bitcoin rewards could increase the price.