New Ways Bitcoin Miners are Making Money After The 2024 Halving Event

The fourth Bitcoin halving event has come and gone and perhaps you’re wondering what’s the current state of the Bitcoin mining community. With the halving event taking place on April 19, 2024, miners now receive 3.125 BTC for every successfully mined block, instead of the previous 6.25 BTC.

Nonetheless, the price of Bitcoin and other cryptocurrencies remained relatively stable after the halving event, with Bitcoin’s price staying above $64,000 for the most part. But that doesn’t mean that the halving effects were not felt, especially among bitcoin miners whose profits were instantly cut in half, while also having to deal with ever-increasing electricity costs.

Bitcoin’s Price Movement Post-Halving Event

On April 13, almost a week before the fourth halving event, the cost of one BTC dropped from $67,000 to $62,000. With regard to miners’ earnings, they received 6.25 BTC for every block mined, which is approximately $387,500 for one mined block.

Fast forward to April 20, 2024, a day after the halving event, and Bitcoin’s price was still holding steady at about $64,000. But the new block reward for mining BTC dropped to 3.125 BTC, equivalent to approximately $200,000 per each successfully mined BTC block.

As of June 11, 2024, the price of Bitcoin stands at $64,000, a 7.64% decrease from its all-time high of $73,780 in March 2024. Thus, the cut in mining rewards and increased computing power needed to mint new BTC coins has caused a significant shift in Bitcoin market dynamics, prompting miners to explore new ways of making money.

Alternative Ways of Making Money as a Bitcoin Miner

1. Going Back to the Basics: Holding and Trading Bitcoin

Many Bitcoin miners are still clutching onto their BTC coins, eagerly anticipating their appreciation over time. As a matter of fact, experts foresee 2024 as a bullish year for Bitcoin, with whispers of a potential high of $120,000 by the end of the year.  So, it’s no surprise miners are reverting to trading and hodling their BTC stash.

But what does it mean to hodl and trade Bitcoin? Well, hodling involves buying and storing Bitcoin tokens in a secure crypto wallet indefinitely. In return, hodlers stand to earn from long-term value appreciation while avoiding loss due to short-term volatility.

Trading BTC, on the other hand, entails buying and selling Bitcoins through conventional exchanges, peer-to-peer platforms, or OTC markets. That way, you can buy more BTC tokens for hodling or profit from the price difference after selling/buying.

1. Lending and Staking BTC

Ever-thought you could earn passive income from lending and staking BTC? Lending Bitcoin is where you give borrowers BTC and earn interest, also known as crypto dividends, over a certain period. Trustworthy crypto lending platforms like Aave and Binance make this process super easy. But make sure you thoroughly research such platforms to avoid frustrations.

Alternatively, staking involves putting your digital assets into a virtual vault to help confirm transactions on a Proof of Stake (PoS) network. Not only does it allow you to make the network more secure. But it also earns you rewards – kind of like earning interest on money sitting in a bank account.

1. Participating in ICOs or DeFi Projects

Investing in ICOs, IEOs, or DeFi startups is both a risk and a chance at big rewards. Miners exchange Bitcoin and other cryptocurrencies for early-stage projects’ tokens, with hopes that it’s the next big thing on the market.

In the realm of DeFi, miners can explore exciting earning avenues, like yield farming or liquidity provision. In fact, they can also reap some big rewards from some play-to-earn games that blend in DeFi features like lending or staking for extra crypto rewards. Take Axie Infinity, for example. Players get to nurture and battle adorable creatures called Axies, but can also trade them as NFTs on conventional exchanges or stake the platform’s SLP tokens for long-term gains.

But, if you’re looking to enjoy a wide range of games using BTC and land crypto payouts, several reputable online casinos have fully adopted cryptocurrencies. In fact, some only offer crypto payment methods. That way, you can play casino games and land potential crypto wins while enjoying instant BTC transactions at almost zero transaction costs. 

However, if you prefer to steer clear of crypto volatility but still want the thrill of casino gaming, online sweepstakes casinos offer an excellent alternative. Purchase gold or sweep coins using BTC or other crypto tokens to play standard casino games and potentially win rewards with real money value.

Is Bitcoin Mining Still Profitable?

Is Bitcoin mining still worth it? The short answer is yes, it is. You only need to find a reliable mining pool and an energy-efficient system while paying attention to your fixed expenses that may eat into your profits.  After all, the blockchain still needs dedicated miners to verify transactions and earn block rewards. Think of it like a crypto gold rush. Get your strategy right, and you’ll be swimming in BTC riches.