December 2, 2023

The next bitcoin halving could crowd out retail miners

The next bitcoin halving could crowd out retail miners

As the planned cut in miner rewards approaches, users are concernedpossible consequences.

Bitcoin has already experienced halving twice – VNovember 2012 and July 2016. Both times, these events marked the beginning of a bull run. But users continue to be bothered by the question – How might the next halving affect the current market situation?

Cihan Wu, co-founder and ex-generalDirector of Bitmain, pessimistic. He suggests that the first two uptrends were “catching up bubble and recession cycles”. In addition, he indicated a decrease in the value of lightcoin in August. The cost of the token increased from $ 31 to $ 135 in the first half of the year, but then in July fell exactly two times. Now it is trading at $ 57. He said:

There is too much speculation ahead of the next halving. Maybe this time a bull run will not happen.

Matthew Roszak, Chairman of Bloq,involved in blockchain development, thinks differently. Roszak expects the price to reach approximately 15,000 – $100,000 and then the “ten year growth” phase will begin.

Be that as it may, with a decrease in rewardswill lead to a decrease in profitability, at least in the short term, so older versions of ASIC will cease to bring any profit to their owners.

Genesis Mining CEO Marco Strang said that fewer equipment in circulation will serve the industry well in the long run. He said:

Halving – a very serious event as most of the ineffective miners will be eliminated. This is a psychological event that can trigger a price increase.

According to Strand, the main effect of the halving will be the destruction of individual small miners, which now occupy less than 20% of the market.

Alexander Gavrik, one of the founders of Uminers, believes that the market will be less volatile as the main players become more powerful:

The market is moving towards industrial mining, and there will be fewer small miners. There are far fewer crypto enthusiasts on the market now.

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