Halving Bitcoin, which became the main topic of heated discussion in early 2020, finally took place. Nevertheless, the question remains open, how will the division of Bitcoin in half affect the crypto industry and how will the miners react to a reduction in remuneration.
Will the price of Bitcoin rise or fall?
Analyzing the current state of Bitcoin, cryptocurrency adherents are conditionally divided into 2 camps. Some believe that the Bitcoin halving will not radically affect the market performance of the flagship cryptocurrency in the near future. Bitcoin was able to demonstrate its viability in the face of a powerful market fluctuation. This indicates the maturity of Bitcoin. That is why this group of cryptanalysts believes that Bitcoin has strong bullish impulses that will lead to the increased price.
Cryptanalyst Garrick Hileman believes that the main feature of the modern financial market is the game of speculation and price movement down. Now it is possible thanks to futures and options. He noted the following:
“Halving Bitcoin 2020 occurred in truly unique market conditions. which were not before. Now the financial market has completely transformed. Derivatives have become a key part of the financial market, speculation on lower prices has become a natural phenomenon. ”
Diego Gutierrez Zaldivar, CEO of IOV Labs, is also convinced that we can’t compare the May halving of Bitcoin with the previous two divisions in half in 2012 and 2016. He noted:
“Before, the reduction of Bitcoins doubled the price increase. But now we must take into account the power of institutional money, which can turn the price of the flagship cryptocurrency down. ”
The consequences of halving Bitcoin will soon be felt by miners. Reducing the remuneration for Bitcoin forces many miners to adapt to new conditions and look for solutions to reduce the cost of cryptocurrency mining. It’s no secret that Bitcoin halving will “block oxygen” to many small miners, more powerful pieces will remain in the game.
What should miners do in order not to go bankrupt?
Cryptanalyst Meltem Demirors in a recent interview said miners should rethink their strategy. He spoke with several miners from the broker-dealer Coin Shares, who are now extremely interested in building up mining capacities. He noted:
“Now miners are more than ever interested in attracting external capital to strengthen mining equipment. They are looking for ways to minimize the risks of possible losses due to a decrease in the profitability of Bitcoin mining. Now the main task for manners is to reduce operating expenses and return to the previous level of income. ”
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.