Will the price of bitcoin double or fall in the next halving next year? And how will the mining industry adapt to halving its income in one night? See what professional miners around the world have to say about this.
Read also: US, European and UK companies can now pay workers in Bitcoin Cash via Bitwage
Miners talk about Bitcoin in half in 2020
The Bitcoin.com team recently spoke with ten leading crypto-mining figures about the upcoming halving of the World Digital Mining Summit in 2019 in Frankfurt. Some think that this could cause a drop in the income of miners, others think that prices will rise rapidly to offset the decline in rewards, all agreeing that it will be a crucial event for the sector.
The complete list of mining experts surveyed in the video includes: Marco Streng, CEO of Genesis Mining; Thomas Heller, Global Sales Director of F2Pool; Sean M. Walsh, CEO and Chairman of the Board, Hyperblock Inc; Mervyn G. Maistry, Member of the Board of Directors, Cyberian Mine; Carson Blake, CEO of SBI Crypto; Alexander Levin, CEO of Asicseer.com; Eric P. Yingling, an independent miner; Nick Damico, CTO of BitPatagonia; Hugh Tian, co-founder of Antpool; and Åsmund Myhre, CEO of Oslofjord Datacenter.
With regard to the professional mining industry, it seems that we should expect to see a major concentration of activity as and when halving. Those with more hash power and access to cheaper energy sources will shy away from market operations that need higher margins to survive and make a profit. "The halving is a brutal cleaning event," said Marco Streng. "He immediately strikes the miners who are not efficient enough and show no mercy."
We could also see fluctuations and changes in the global distribution of hash power over the few weeks that should elapse between the halving of the BCH and the halving of the BTC, the SHA miners 256 now moving to the most profitable channel.
With regard to the effect of halving on prices, opinions are more divided. We could see the prices double, because the miners will have to keep their current sources of income, or even take off soon after, as in the past. "If you look six months before the halving and six months after the halving in the two previous cases, you will see a massive increase in the price of bitcoin," commented Sean Walsh. "It's a bit scary to be a minor and know that your source of revenue will be halved overnight, but the exchange rate will more than offset the reduction in our bitcoin revenues."
Watch the full video on the official Bitcoin.com Youtube channel to know the full remarks of all professionals in the mining industry, subscribe and be sure to leave a comment to participate in the debate.
What and when is the next halve?
Whenever a new block is extracted, those who have facilitated it are rewarded with a determined number of pieces. But once every 210,000 blocks, this set reward amount is programmed to decrease by half, hence the name dividing by two. This mechanism was created by Satoshi Nakamoto to ensure that the current supply is limited, making coins more rare, as there will never be more than $ 21 million in circulation. It can also create upward pressure on prices, unlike most currency currencies that only lose value over time due to inflation.
The first halving took place in 2012, when the block premium originally set at 50 pieces fell to just 25 coins. The second and last division to date has been held in 2016, when the block bonus has gone from 25 to 12.5 coins.
The next bitcoin money reduction operation is scheduled to take place in April 2020. After that, the BCH miners will lose half of the current block premium (12.5 BCH) and will only receive 6 , 25 BCH and charges per block extracted. The halving of BTC's share is expected shortly after that of May 2020. A German bank recently predicted a tenfold increase in the price of BTC at the next halving of the overall premium.
If you want to enter the cryptography market before halving next year, you can safely buy bitcoins (BCH) and bitcoins (BTC) with a credit or debit card on buy.Bitcoin. com. You can also exchange digital resources for cash in person, privately, in our non-depository market, peer.e-peer, local.Bitcoin.com, or try our first recently launched trading platform, exchange.Bitcoin. com.
What do you think will happen cryptocurrency prices after the halving of 2020? Share your thoughts in the comments section below.
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