Part 8/10:
A paradoxical aspect of this cycle is that, despite Bitcoin’s depressed price, miners are increasing their hash rate—indicating a robust arms race to secure the network before the reward reduces. Miners are mining at a loss, betting on future price appreciation, which could justify their current aggressive expansion of hash power.
The "game theory" behind mining is critical: miners must balance upfront costs against potential long-term gains. As block rewards halve, the incentives for miners intensify, prompting investments in more efficient hardware and strategies to maximize yields, so long as the network remains profitable or hopes for a future price surge.