Fidelity refutes claims that the Bitcoin halving weakens network security: miners' average daily revenue has increased from $26,300 to $40.2 million
BlockBeats News, June 28, Fidelity Digital Assets recently released a research report, directly addressing concerns that Bitcoin halving will weaken network security in the long term. The report's author, Fidelity research analyst Daniel Gray, pointed out that Bitcoin network security is not only dependent on block rewards. Transaction fees, market incentives, and other economic forces also continuously motivate miners to maintain network security and make sustained attacks prohibitively expensive.
On the data side, Gray noted that although block subsidies continue to decrease, the increase in Bitcoin’s price has largely offset this effect. The average daily revenue for miners has grown from about $26,300 during Bitcoin’s first halving cycle to more than $40.2 million today. He wrote: "Despite declining issuance, miner incentives—and thus, network security—have historically strengthened in line with rising Bitcoin prices." Since the fourth halving in April 2024, the miner block subsidy has dropped from 6.25 to 3.125 Bitcoin per block.
However, the report’s optimistic conclusion stands in stark contrast to the reality faced by publicly traded mining companies. Multiple industry analysts have described the current environment as one of the toughest mining conditions on record, due to a combination of falling block rewards, rising operating costs, and intensifying competition. As a result, many mining companies have begun transitioning into the AI and high-performance computing sectors, leveraging existing electricity infrastructure to meet AI computing demand.
VanEck estimates that if publicly listed mining companies want to fully transition to AI infrastructure, they may need to raise as much as $5 billion in additional capital. However, the requirements for data center standards, cooling, power redundancy, and networking are much higher for AI data centers than for traditional Bitcoin mining farms, and the difficulty of this transition should not be underestimated.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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