Part 2/8:
Bitcoin miners are rewarded in two core ways: through the mining subsidy granted by the Bitcoin network for validating transactions and by collecting transaction fees. Every ten minutes, miners who successfully compile recent Bitcoin transactions into a block are compensated. Since its inception in 2009 with a subsidy of 50 Bitcoins, this figure is halved roughly every four years—a process known as halving.
The previous halvings in 2012, 2016, and 2020 saw the rewards drop to 25BTC, 12.5BTC, and 6.25BTC respectively. This April, the reward is set to drop to 3.125 BTC. At a peak value of about $70,000 per Bitcoin, miners will face a significant loss of approximately $28,750 every ten minutes if they can’t offset the decreasing subsidies.