Bitcoin halving : which miners go? When will prices rise?

 Less than three weeks before the block reward of the largest cryptocurrency, Bitcoin, was halved, the crypto media Cointelegraph published an analysis of the attitude of the crypto miners and the price trend after the halving.

The article stated that as the date of Bitcoin's halving is approaching, this event is becoming more and more popular on search engines, and people's expectations are also increasing. The miners of Bitcoin Cash and BitcoinSV, which have previously experienced a halving, are also investing their computing power in the higher-profit Bitcoin network.

Although some experts believe that the halving may have a significant impact on Bitcoin spot prices based on past experience. But the global situation in 2020 is more complicated, the new crown epidemic is spreading, and the global market is volatile. What is even more optimistic is that Bitcoin Cash and bitcoin SV, which previously halved the block reward on April 8 and April 10, respectively, caused a significant drop in the network hash rate due to the loss of crypto miners after the halving.

In terms of price, the halving did not promote the price increase of these two cryptocurrencies. In fact, the spot prices of Bitcoin Cash and Bitcoin SV fell by 15% and 10%, respectively.

Ali Beikverdi, CEO of South Korean crypto company bitHolla, believes that miners ’reaction to bitcoin halving will be different from that of bitcoin cash and bitcoin SV. Beikverdi believes that both are "extremely centralized" and therefore not suitable for predicting the upcoming halving of Bitcoin.

In terms of mining, Bitcoin Cash ’s computing power is controlled by mining pools owned or supported by heavyweights such as Roger Ver and Bitmain ’s Wu Jihan, as is Bitcoin SV, with computing power by Craig Wright and billionaire Calvin Ayre Supported or owned by the mining pool.

At present, although many miners put their computing power into Bitcoin, when Bitcoin
completes the block reward halving after three weeks, they are likely to return to the Bitcoin Cash and Bitcoin SV network.

Another problem posed by the halving for miners is that efficiency must be improved to maintain profits. Some Chinese miners have prepared more advanced miners, but some smaller miners may find their competitiveness is increasingly threatened. Beikverdi emphasized, "After each halving, bitcoin miners will always suffer a huge impact, but then the miners will slowly recover."

He also mentioned that the departure of small miners will not happen overnight. Because, “Be aware that miners cannot quickly terminate their business operations and usually must comply with their energy contracts. This means that miners may need 6 to 12 months to complete the energy contracts they own. Mining usually has a business cycle of 6 to 12 months It takes a while for weaker miners to go bankrupt. "

From the market point of view, although miners are providing computing power to protect network security, bitcoin holders seem to be storing bitcoin. The cryptocurrency exchange recorded a large amount of capital outflows in April, which may indicate that Bitcoin owners are leaning towards long-term holdings. In addition, some U.S. cryptocurrency owners will use the stimulus funds they receive to purchase Bitcoin.

Joe DiPasquale, CEO of the crypto hedge fund BitBull Capital, believes that the upcoming halving of Bitcoin block rewards will most likely continue to have a positive impact on Bitcoin spot prices. He mentioned, "The upcoming halving of bitcoin may have a positive effect on the price of bitcoin in the next 12 to 18 months. The last two halvings of bitcoin have seen a significant price appreciation, the first Achieved a 1,000-fold gain in the middle of the year, and the second halving took longer, but brought greater returns. "

However, he believes that this time the price of Bitcoin may rise slower than people expect, because "cryptocurrency is a market driven by individual users. There is still too much uncertainty about the impact of Western and Asian markets on the demand for cryptocurrency.

Warm reminder: The market changes rapidly, investment needs to be cautious, and the operation strategy is for reference only.

Bitcoin halving : which miners go? When will prices rise? Bitcoin halving : which miners go? When will prices rise? Reviewed by Js Cool on April 25, 2020 Rating: 5
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