Tuesday, 25 June 2024
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The halving of Bitcoin might herald the next bull market

  • Bull markets have followed each of the three Bitcoin halvings to date.
  • Some miners would struggle to make ends meet if Bitcoin doesn’t maintain its recent upswing.
  • The rewards for miners will be halved assuming that the price of Bitcoin remains unchanged at the time of the halving.

Bull markets have followed each of the three Bitcoin halvings to date, but Basit and others argue that a swift spike in the cryptocurrency’s price isn’t always inevitable. After the halving, some miners would struggle to make ends meet if Bitcoin doesn’t maintain its recent upswing.

There is an economic component to mining since miners receive Bitcoin in exchange for adding transaction blocks to the blockchain. A miner’s chances are better the more processing power they possess.

Bitcoin

The rewards for miners will be halved, resulting in a 50% reduction in their revenue, assuming that the price of Bitcoin remains unchanged at the time of the halving.

Many may find themselves underwater very fast if they don’t improve their equipment or move to an area with lower energy prices. According to BlocksBridge Consulting partner Wolfie Zhao, many inefficient mining enterprises will face an existential crisis as their profit margins are going to be compressed.

The newest generation of Bitcoin mining hardware, which is anticipated to ship early next year, was recently revealed by companies who manufacture it.

Miners in areas with inexpensive electricity will be able to mine Bitcoin for far less money with cutting-edge hardware. But there isn’t any proof that miners are engaged in an arms race.

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