While much has been written about Bitcoin maximalism’s impact as a cultural force (and its inevitable decline), less has been said about how the ideology drives financial markets – including its influence on deployment decisions for institutional capital. This is worth examining because digital asset allocations may now be poised for a revolutionary shift towards the Ethereum blockchain.

Bitcoin (BTC) miners, in particular, may face a new opportunity as Ethereum’s potential value is unlocked. This opportunity may help offset and reverse the pressured margins that have dominated the sector starting in 2022, and may continue for some time.

Next year, the number of bitcoins that can be mined per block will drop from 6.25 bitcoin to 3.125, making it harder for miners to turn a profit – unless, of course, the BTC price rises and/or network competition declines enough to compensate. Some believe this is exactly what will transpire, and much has been written on the Bitcoin blockchain’s supply/demand mechanism and its impact on mining economics. But from a simplistic, point-in-time perspective, at the exact moment of halvening, miner revenue will be instantly cut in half (assuming all else remains equal, admittedly a big assumption).

Get the latest news here: Cointime channel — https://t.me/cointime_en