Will Gate BTC mining rewards change? An in-depth analysis of the key impacts of the halving cycle

In 2028, Bitcoin will undergo its next halving, reducing the block reward from 3.125 BTC to 1.5625 BTC. For users choosing Gate BTC mining services, this is not only a technical event but also a critical moment to reassess mining strategies and profit expectations.

Throughout nearly fifteen years of Bitcoin’s history, the halving mechanism has been at the core of its deflationary nature, with all three past halving events closely linked to subsequent bull markets.

How does the halving mechanism directly impact mining rewards?

Bitcoin mining income mainly consists of two parts: block rewards and transaction fees. Among these, the block reward is the primary source of income for miners. Halving events occur approximately every four years, and their most immediate economic effect is to cut this core income by 50% instantly.

For example, in the most recent 2024 halving, the block reward drops from 6.25 BTC to 3.125 BTC. This means that if a miner could mine one block per day before the halving, earning 6.25 bitcoins, then after the halving, with the same hash rate and luck, their daily bitcoin output would be directly halved to 3.125.

This income shock is systematic and unavoidable. The Bitcoin protocol sets a maximum total supply of 21 million coins and controls issuance precisely through periodic halvings. After the 2028 halving, approximately 96.88% of all bitcoins will have been mined, further increasing scarcity.

The other side of the coin: scarcity and potential price appreciation

Pure panic is superficial. Bitcoin’s design philosophy aims to highlight scarcity value by reducing supply, thereby driving prices upward when demand remains steady or increases. Historical data strongly supports this.

After each halving, Bitcoin’s price has reached new all-time highs in subsequent cycles. This creates a compensatory mechanism: although the amount of bitcoin mined by miners halves, if the USD value per bitcoin doubles or more, their fiat-denominated income may actually increase.

This is the biggest “change” and “unchanged” aspect of the halving cycle: the reduction in block rewards is deterministic “change,” while the resulting supply-demand adjustments and potential price increases serve as “hope anchors” for miners to hedge against income reduction.

Analyst PlanB’s Stock-to-Flow model even predicts that after the 2028 halving, Bitcoin’s scarcity will propel its value to astonishing heights.

How miners respond: efficiency, integration, and diversification

Not all miners can easily wait for prices to rise. The halving immediately challenges miners’ break-even points, especially if Bitcoin prices do not rise in tandem initially. Therefore, the entire mining industry is actively undergoing structural adjustments.

To survive and profit amid reward reductions, leading mining companies are transforming along three dimensions: improving operational efficiency, accelerating industry consolidation, and exploring revenue diversification.

Miners are seeking the cheapest energy sources worldwide, deploying the most efficient ASIC miners to minimize per-unit hash costs.

Post-2024 halving, industry consolidation cases like Riot Platforms attempting to acquire Bitfarms have increased significantly, aiming to leverage scale effects to share fixed costs and enhance risk resilience.

More forward-looking miners, such as Terawulf and Iris Energy, are beginning to utilize excess hash capacity for high-demand areas like AI model training, opening a “second revenue curve” beyond Bitcoin mining.

How can ordinary investors participate in the halving cycle opportunities?

For most individuals, building a mining farm or competing professionally has become too high a barrier. However, this does not mean ordinary investors cannot share in the benefits of the Bitcoin halving cycle. Choosing compliant, efficient, and low-threshold participation paths is key.

Through mainstream trading platforms like Gate, investors can access related products and services with greater flexibility.

Dollar-cost averaging and long-term holding are effective strategies. Buying Bitcoin gradually before and after the halving during consolidation periods, and holding long-term, aims to capture potential long-term upward trends.

Participating in Gate’s BTC mining products offers a “device-free mining” solution. Users do not need to buy or maintain expensive mining hardware; they simply invest BTC and enjoy a proportional share of mining output. As of February 11, Gate’s BTC mining holdings reached 2,647 coins, with an estimated annualized return of 9.99%.

This approach is especially suitable for investors seeking mining income during the post-halving cycle but unwilling to face hardware upgrades, energy costs, and operational complexities. The platform’s scale and professional team help optimize mining efficiency.

Be cautious of risks and focus on long-term prospects

Beyond the optimistic expectations driven by the halving narrative, it is essential to recognize the associated risks. In the short term, prices may not rise linearly. In the months following the 2024 halving, the market experienced significant volatility and consolidation.

If Bitcoin’s price remains depressed long-term and cannot cover high electricity and hardware costs, some miners may be forced offline, leading to a temporary decrease in network hash rate. While this could strengthen the network in the long run, it may also intensify market sentiment fluctuations in the short term.

Therefore, any decision related to Bitcoin mining should be based on rigorous risk assessment. Investors should not allocate funds beyond their risk tolerance and should consider diversified asset allocation.

Summary

By 2028, Bitcoin’s block reward will halve again, and over 96% of all bitcoins will have been mined globally. Industry leaders are investing hundreds of millions of dollars to upgrade mining hardware, and mergers and acquisitions among mining companies are frequent. Hash rate demand on trading platforms may surge.

For users participating through Gate, understanding the “dual transformation” of rewards—namely, the deterministic reduction of coin-based returns and the potential increase in fiat-based returns—is the first step in formulating a long-term strategy.