Cryptocurrency Mining Halving: The 12th Year Turning Point and Challenges of the New Mining System

Since the advent of Bitcoin, the cryptocurrency industry has shaken the financial world with innovative technologies and economic models. In particular, the evolution of mining systems is a crucial element supporting the core of cryptocurrencies. In November 2024, Bitcoin will mark its 12th anniversary of halving, and the industry is facing a new turning point. Understanding the structural changes experienced by cryptocurrency mining during this period is essential for predicting the future development of the industry.

Limitations on Bitcoin Supply and the Surge in Mining Difficulty

A fundamental characteristic of Bitcoin is that its total supply is limited to 21 million BTC. This design is a basic principle to ensure asset scarcity. As of January 2026, approximately 19.98 million BTC are in circulation, with about 1.2 million BTC remaining to be mined.

Mining difficulty is rising rapidly. According to the latest data, Bitcoin’s mining difficulty has reached 102.3 trillion, surpassing the 100 trillion mark for the first time on November 5, 2024. This figure symbolizes the increasing challenges miners face with each halving. The next difficulty adjustment is scheduled for December 2, making efficiency improvements across the industry an urgent priority.

Miner Management Pressure: Declining Block Rewards and Path to Efficiency

Bitcoin halving occurs every four years, reducing the block reward by half. During the first halving 12 years ago, the reward decreased from 50 BTC to 25 BTC. Since then, after three halving events, the current block reward has fallen to 3.125 BTC. The latest halving in April 2024 significantly limited the supply of newly mined Bitcoin entering the market.

This reduction in block rewards has placed new management pressures on miners. According to a report by European cryptocurrency investment firm CoinShares, the industry in 2024 faced significant difficulties, including a decline in both profitability and hash price. When Bitcoin traded near $56,500 in July, major mining company TeraWulf was considering mergers due to low profit margins.

Large mining firms like Marathon Digital are focusing on improving mining efficiency and adopting artificial intelligence to stay competitive. These companies strategically sell BTC mined after the fourth halving to strengthen their capital structure, responding to the harsh mining environment. In August, Marathon Digital issued $250 million in convertible senior bonds and began actively investing in Bitcoin purchases.

Market Upswing as a Salvation: Price Rise and Mining Companies’ Adaptation Strategies

While miners face tough mining conditions, the overall rise in the cryptocurrency market is partially alleviating these challenges. Bitcoin approached an all-time high of about $99,600 in November 2024, and the bullish trend continues. The past year has seen an astonishing increase, with the current price at $89,240.

Since the halving event in April 2024, Bitcoin’s price has increased by approximately 45%, and the dollar-denominated block rewards have also grown. This price increase has improved miners’ revenues, helping the industry regain some momentum. The recovery of the cryptocurrency market offsets the negative impact of rising difficulty and is a key factor in maintaining miners’ profitability.

Green Energy and AI Adoption: Mining Innovation in the Halving Era

To counteract rising difficulty and declining rewards, the industry is accelerating technological innovations. El Salvador has strengthened efforts to introduce innovative mining methods utilizing geothermal volcanic energy, pursuing sustainable mining practices. This initiative is gaining attention as a potential solution to the rising costs of energy.

The adoption of artificial intelligence is also a vital strategy for improving mining efficiency. Large mining companies are implementing AI technologies to optimize mining processes and reduce electricity consumption. These technological innovations are essential evolutions for the cryptocurrency mining industry to mitigate the economic pressures brought by halving.

The cryptocurrency industry has learned from the halving 12 years ago and demonstrated resilience in adapting to new environments. Facing structural challenges such as surging difficulty and continuous decline in block rewards, it is countering with two approaches: price increases providing relief and technological innovations enhancing efficiency. The persistent adaptation of miners and the industry’s ingenuity will shape the future of cryptocurrency mining.