Fidelity Rejects Claims Bitcoin Security Weakens After Halvings

Fidelity Digital Assets is rejecting the idea that Bitcoin gets less secure as mining rewards shrink with each halving. A new report by analyst Daniel Gray argues network security depends on more than block rewards alone, pointing to transaction fees and broader market incentives that keep attacking the network too costly.

Critics have long warned that shrinking block rewards could eventually weaken miner incentives unless transaction fees pick up the slack. Since April 2024, miners earn 3.125 BTC per block, down from 6.25 BTC previously. Gray says Bitcoin’s rising price has more than made up for that drop, with average daily miner revenue jumping from roughly $26,300 during the first halving cycle to over $40.2 million today.

“Despite declining issuance, miner incentives and by extension, network security historically strengthened alongside Bitcoin’s price,” Gray wrote.

Miners Still Face Real Financial Pressure

Even with Fidelity’s optimistic take, publicly traded mining firms are struggling. Lower rewards, rising costs and heavy competition have pushed many miners toward AI and high-performance computing to use their existing power infrastructure. VanEck estimates miners could need up to $50 billion to fully pivot into AI. Blocksbridge Consulting noted Bitcoin mines run on simpler infrastructure than AI facilities, which demand far higher uptime and cooling standards.