How Does the “Halving” Event Affect the Profitability of Crypto Mining?

The halving event, which occurs approximately every four years, cuts the block reward for miners by 50%. This immediately reduces the miner's primary revenue source, putting significant pressure on profitability.

Less efficient miners with high operational costs may be forced to shut down their machines, leading to industry consolidation. Miners must upgrade to more energy-efficient hardware or rely more heavily on transaction fees for revenue.