Bitcoin miners are in an exciting race to be the first to process the block following the fourth halving as it contains the coveted "epic satoshi". This exciting event is reported by CoinDesk, citing Adam Swick, Director of Development at #Marathon Digital.
So, what's behind this race? In 2022, Casey Rodarmore, a famous programmer and co-founder of the #Ordinals project, published an article on his blog in which he categorized satoshis according to their rarity. He divided them into different categories ranging from ordinary to mythical. The latter category includes the very first bitcoin genesis blockchain satoshi, which is believed to belong to the mysterious #Satoshi Nakamoto.
In January 2023, the Ordinals protocol was introduced, allowing the creation and exchange of "tokens". This protocol marked the beginning of a new era for satoshis, especially those that appear immediately after a halving event. Such satoshis are now categorized as "epic". According to Swick, the value of such an asset runs into the millions.
"If you compare satoshis that are generated every two weeks to those generated every four years, their value is not comparable. While I can't give you an exact figure, it's measured in the millions." explains Swick.
This estimate coincides with Rodarmor's assertion that there are only 32 "epic satoshis" in the world. Furthermore, Tristan, founder of the Ordiscan project, stated in January 2024 that the potential value of such an asset is 50 million dollars.
The value of these "epic satoshis" has increased significantly due to the fact that it has recently become possible to exchange them for non-playable tokens. This is a significant shift, making this halving event the first time that "epic satoshis" have tangible value. As a result, miners are now competing fiercely to obtain these highly sought-after assets.
Swick revealed that Marathon Digital already has a significant portfolio of "unusual satoshis," which refer to the first satoshis of the new blockchain. The company is constantly monitoring the market to determine whether it is profitable to sell these assets. However, predicting the odds of processing the first blockchain after halving is difficult, as it is akin to a lottery. Nevertheless, the company is making sure that its equipment is connected and functioning optimally as the halving event approaches.
According to Swick, Marathon Digital owns 5% of the global hashrate. However, the reward for mining the first block after the halving event will be disproportionately small compared to the value of an "epic satoshi." The reward will be 3,125 BTC (about $196,000 at current exchange rates), while the "epic satoshi" is valued at $1 million.
Swick believes that competition in this sector is already fierce. He suggests that only big miners have a real chance to get "epic satoshi". It's worth noting that the fourth halving of the bitcoin network is expected on April 19 or 20, 2024. This event will halve the reward for each mined block, resulting in a reward of 3.125 BTC.
CoinShares experts predict that the average cost of mining 1 BTC after #halving will be $37,856. However, Marathon Digital CEO Fred Thiel claims that the company's break-even point is around $46,000.
