The International Business Times reports that “The next Bitcoin (BTC) halving, which reduces each block reward by half, is scheduled to take place less than three months from now. Crypto investors have frenzied debates over whether this event will be bullish for the leading crypto or not.”
The date is unsure as it is based on the number of blocks added to the blockchain. This is based on the amount of Bitcoin transactions so the date is just a projection or an estimate. It is estimated to commence sometime in May, the scheduled halving will reduce Bitcoin miners’ rewards from 12.5 BTCs to 6.25 BTCs.
Even though Bitcoin has tumbled over the last several days, it is still much higher than the beginning of the year. many expect the world’s largest cryptocurrency to surge to new highs in light of this, a cursory glance of the charts will reveal that bitcoin is currently in its consolidating phase, with the coin recording brief breaches above $10,000, before falling back again, AMB Crypto reported.
Will It Go UP or Down
Once the halving occurs, the unfortunate truth is that the profitability of all but the most efficient mining operations will be greatly challenged. To stay in the green, many will either be forced to upgrade their equipment or to shut down their mining operations altogether. (Cointelegraph)
However, careful planning can mitigate these risks, and there are several steps miners should take to set themselves up for sustained profitability in the wake of the halving. To understand all the factors at play, it’s important to review what makes mining profitable in the first place. (Cointelegraph)
- Hash rate and difficulty.
- Power consumption.
- Power cost.
- Block reward.
- And the exchange rate of BTC to USD.
Whales Sitting Tight
Asia Times reports that whales with balances 1,000-10,000 BTC may be exiting the “wait-and-see” phase now, meaning they could potentially be done with the ‘hodling’ phase. Historically, exits from such phases have been followed by an increase in volatility, which means that bitcoin’s market could be in for a very volatile phase if such whales do indeed end their dormancy.
No one knows for sure which way the market will go, many crypto gurus and social media influencers are trying to tell us that the price of Bitcoin will soar as we approach the event.
IBT says that the argument that bulls posit is that the reduction of supply will warrant miners to increase the price of the crypto to maintain operations. But some think that it will have no effects on BTC and that the halving is already priced in since last year.