How Miners Earn More with 93.75% Less Bitcoin – The Halving Paradox Explained!

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Key Takeaways

Has Bitcoin’s price appreciation kept up with the supply reduction from halvings?

Oh, absolutely. Bitcoin’s price growth has been outpacing the supply reduction with flair-over and over again!

Are miners today earning more or less than miners in 2020?

Well, current miners are making $340,000 per block, even though they’re getting half the Bitcoin they did in 2020. Go figure!

Bitcoin miners today are earning just 3.125 BTC per block-93.75% less than the 50 BTC they used to get in 2012. And yet, somehow, they’re living their best lives. 🤑

Welcome to the baffling world of Bitcoin economics, where less equals more. It’s like cutting down on your pizza slices but somehow finding more cheese. Makes no sense, right? But that’s how Bitcoin rolls.

The Bitcoin Numbers Tell the Story

Unchained’s historical data paints a pretty clear picture. Every halving epoch has ended with miners making more in dollar terms, even though they got half the Bitcoin midway through. Because why wouldn’t that happen?

Let’s look at Epoch 4 [2020-2024]. Miners started earning 6.25 BTC per block, worth $54,000.

Fast forward to the end of the epoch: same 6.25 BTC, but it’s worth a jaw-dropping $398,000. That’s a 637% increase! Bitcoin’s price grew so fast, it made the supply reduction look like a hiccup. ⏩💸

Now, let’s talk about Epoch 5. Miners started at $199,000 per 3.125 BTC block. Today, those same blocks are worth $340,000. Talk about a glow-up! 💥

We’re barely into this epoch, and block rewards have already shot up by 71%. I’d say that’s a pretty solid ROI, wouldn’t you?

Basically, miners today are making more with 3.125 BTC than the miners in 2020 who had double the Bitcoin. Talk about getting paid for doing less. 😎

Why Traditional Economics Gets Bitcoin All Wrong

Traditional economics would have you believe that halving Bitcoin’s supply by 50% would cut revenue by-you guessed it-50%. But Bitcoin says, “Hold my beer.” 🍻

Instead of following conventional rules, miners who make it through the initial halving storm often see their revenues skyrocket by 300-600% by the end of the epoch. Talk about a plot twist!

When halving hits, miners take a short-term revenue hit. But if they hang on tight, Bitcoin’s price adjusts and makes up for it. And then some.

Miners Are Selling Despite Record Rewards

Here’s a juicy tidbit: even though miners are raking in the most valuable rewards in BTC history, they’re still selling like there’s no tomorrow. According to Glassnode, miners have been dumping Bitcoin like it’s hot, especially in September and October 2025.

This happened during a period when miners were earning record-breaking rewards. Is it that they just can’t resist a good sale, or are they just getting rid of their stash before BTC’s price takes a nosedive? 🤔

Why the selling spree? Well, a mix of profit-taking, ongoing hardware upgrades, and shareholders demanding results. It’s all about that bottom line, baby!

Some miners clearly timed their Bitcoin sales perfectly, cashing in before the price dipped from $125,000 to its current levels. Not a bad move, huh? 🤑

What Comes Next

If history is any guide, Epoch 5 could end with block rewards exceeding $1 million per block-even though miners will still only get 3.125 BTC. Bitcoin would need to hit $320,000 or higher by 2028. Now that’s some ambitious math!

The real question is, how long can this crazy pattern keep going? Each halving requires a bigger price jump to keep up. The stakes get higher with every epoch, and it’s starting to look like Bitcoin’s price will need a few miracles to maintain the trend.

But with more institutional investors and governments potentially getting in on the action, who knows? Maybe Bitcoin’s got more tricks up its sleeve. 🪄

The Bottom Line

Even though miners are earning 93.75% less Bitcoin than they did in 2012, they’re still swimming in cash. 💰

For fifteen years and five epochs, less Bitcoin has meant more wealth. Will this continue? Only time will tell. But for now, the paradox is still holding strong. 👏

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2025-10-31 21:25