Great expectation for the future of Bitcoin after halving
We are just over a month away from the expected Bitcoin halving. All analysts are speculating on the possible consequences that an event of this magnitude will have within the cryptocurrency market.
The future of Bitcoin after halving
We are just over a month away from the expected Bitcoin halving. All analysts are speculating on the possible consequences that an event of this magnitude will have within the cryptocurrency market. As we have already explained on BitcoNews, halving is an event that halves the reward miners receive for each block mined. This event gives Bitcoin one of its fundamental characteristics: deflationary state.
Most analysts in the crypto industry have a bullish outlook for the future of price after halving occurs. The strongest reason is the basic operation between supply and demand: with demand staying at the same levels or increasing and the halving that will reduce the supply of Bitcoins in the market in half, there will be an imbalance between supply and demand that should be corrected, in theory, by the price. This is one of the basic laws of the market economy. However, there are those who affirm that the price may not go up since they consider that the speculation of traders in the cryptocurrency market is very great and that makes the movement that the price will have in the future unpredictable.
One of the biggest questions regarding halving is "what will happen to the miners after their rewards are reduced?" Most experts believe that many of the miners who use old-generation mining equipment, such as the Antminer S9, will be forced to leave the network if the price of Bitcoin does not double, that is, if the price of Bitcoin does not it reaches $ 13,000. This exodus of miners will result in a decrease in the difficulty of mining and will make mining more profitable for those miners who continue in the Bitcoin network. Blockware Solutions CEO Matt D'Sousa explains: "The decrease in difficulty after halving is entirely determined by the margins of the miners, influenced by the price of Bitcoin. If the price of Bitcoin is below $ 9,000, then margins will be poor for miners. If the price of Bitcoin remains at $ 7,200, then many miners will have to close. It will probably be around 27% -35% of the network if Bitcoin remains below 9,000 for several weeks after halving."
In short, halving is expected to have a safe impact on the miners' ecosystem, in which those with the most advanced equipment in the industry will "survive". On the other hand, the effect that halving may have on the price of Bitcoin is uncertain and there is much discrepancy among analysts in this regard.