Bitcoin Mining May Collapse After Next Halving
Bit Digital’s Sam Tabar warns Bitcoin mining could collapse post-halving as new players disrupt the market.
- Sam Tabar predicts Bitcoin mining industry collapse
- Halving will pressure existing miners’ profitability
- New entrants could disrupt traditional mining firms
Post-Halving Pressure Mounts for Miners
The future of commercial Bitcoin mining is in question, according to Sam Tabar, CEO of Bit Digital. In a striking statement shared via Cointelegraph Magazine, Tabar predicted that the industry could be “dead” following the next Bitcoin halving event, expected in 2028. His reasoning? Rising costs, shrinking rewards, and an increasingly competitive landscape.
Bitcoin halvings, which occur every four years, reduce the block reward miners receive for validating transactions. While these events are often bullish for Bitcoin’s price, they also strain the financial model for miners. With each halving, the reward drops by 50%, forcing miners to become more efficient—or face extinction.
Rising Competition and Shrinking Margins
Tabar emphasizes that new competitors with access to cheaper energy and more advanced infrastructure are entering the space. These entrants could rapidly undercut traditional mining companies that are already battling high operational costs and regulatory pressure.
“Legacy miners who can’t innovate or secure low-cost energy deals are going to get wiped out,” said Tabar. The cost to mine a single Bitcoin could surpass the actual price if outdated mining operations don’t adapt fast enough.
Bit Digital itself has shifted much of its focus toward renewable energy and energy-efficient operations—moves that Tabar says are essential to survive the post-halving reality.
What Could Save the Industry?
While Tabar’s prediction is stark, not everyone agrees the mining industry is doomed. Innovations like immersion cooling, AI-optimized operations, and growing interest in mining-as-a-service could offer lifelines.
Still, the message is clear: the Bitcoin mining business is no longer just about having the most machines—it’s about strategy, location, and agility. The next halving could mark a turning point, not just in Bitcoin’s history, but in the mining landscape as a whole.
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