June 2022 Bitcoin Brief
Rising energy costs and falling bitcoin prices have negatively impacted mining economics. Coupled with a higher cost of capital, lower miner revenues have led miners to sell accumulated balances to fund their operations. Miners are typically long bitcoin as a result of the mining process, whereby the reward for confirming transaction blocks includes newly minted bitcoins, the “block subsidy,” and transaction fees. Together, these are known as the “block reward.”
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