Part 4/14:
One of the core insights pertains to how the industry adapts economically after a halving. The speakers explain that miners' profitability depends heavily on factors like energy costs, hash rate, hardware efficiency, and transaction fee revenue. High-cost miners may be forced to shut down during difficult periods, but due to Bitcoin's protocol—where supply is capped—the overall production remains resilient.
They introduce the concept of the "cost curve," comparing Bitcoin mining to traditional commodity industries. Miners with the lowest operational costs survive downturns because they can cover expenses even when Bitcoin prices dip. Post-halving, transaction fees tend to spike due to increased network activity, forming a natural hedge that supports miners' economics.