June 25, 2024

Five events that may occur before halving on the Bitcoin blockchain

Five events that may occur before halving on the Bitcoin blockchain

Alistair Milne, Chief Information Officer at Altana Digital, spoke about five events that, according toIn his opinion, they may occur before the halving on the Bitcoin cryptocurrency blockchain (BTC).

According to the Bitcoinblockhalf service, halving will occur on May 14, 2020. The reward for adding a block will be reduced from 12.5 to 6.25 BTC. As a result, inflation of the digital asset will decline from 3.7% to 1.85%.

Economists speculate that halving will provokea powerful bullish trend, so traders will begin to prepare for halving the rewards in advance. Alistar believes that the following events are expected in the next five months:

  1. traders will close short positions;
  2. investors will begin to actively buy Bitcoin;
  3. miners will not sell coins;
  4. owners of unprofitable altcoins will exchange them for BTC;
  5. bulls take control of the market.

The previous halving, held in 2016, coincidedin time with the rapid development of individual mining on ASIC devices. However, over the past two years, asset production has come under the control of large enterprises that consume electricity that is comparable to Austria’s energy costs. At the moment, the cost of mining 1 BTC is at least $ 3,500, in most European countries this figure reaches $ 7,000. Therefore, if the asset rate does not grow, then many Bitcoin mining farms will have to close. Now the market is dominated by a bearish trend, and analysts predict a further depreciation. Given future prospects, January and February will be an ideal time to build up cryptocurrency reserves on the eve of the upcoming pump.