With the Bitcoin (BTC) halving event approaching in the near future, there’s been a flurry of analysis from cryptocurrency experts regarding its possible effects on the digital currency market. The majority of these predictions suggest positive outcomes, but some may raise concerns for miners.
“Many will suffer”: Charles Edwards on Bitcoin (BTC) halving
In general, the halving of miner rewards is great for Bitcoin (BTC) and the entire cryptocurrency segment in the long run. At the same time, its short term outcomes might be painful for some actors within the BTC ecosystem, Capriole Investments’ founder Charles Edwards says on X.
In the long run, the Halving benefits Bitcoin and stable monetary systems. However, in the short term, numerous entities may face hardships, with some potentially going bankrupt within the next few months.
— Charles Edwards (@caprioleio) April 13, 2024
Specifically, the upcoming bitcoin (BTC) halving in the near future may pose significant challenges for miners using outdated equipment. According to Edwards, some of these miners are at risk of becoming unprofitable and even facing financial ruin by the end of this year.
The anticipated fourth Bitcoin (BTC) halving is set to transpire around 1:53 p.m. UTC on April 19, 2024. This event will occur once the leading cryptocurrency achieves a block height of approximately 840,000.
The reward for mining a Bitcoin block will decrease from 6.25 Bitcoins to 3.125 Bitcoins. Consequently, some miners with less efficient hardware may struggle to remain profitable during the next mining cycle.
The Bitmain Antminer S19, a widely used ASIC miner for SHA-256 coins like Bitcoin, Litecoin, and others, will only generate a profit after the halving event if the price of Bitcoin exceeds $80,000 according to certain predictions.
Tether’s Paolo Ardoino calls BTC halving “poetic,” here’s why
The built-in Bitcoin (BTC) system includes a mechanism known as halving. This feature, which is an inherent part of Bitcoin’s technology design, cuts the production of new Bitcoins in half approximately every 210,000 blocks or around every four years.
In simpler terms, as the supply of Bitcoin is capped and its scarcity increases, its economic value also rises.
Paolo Ardoino, the CTO of Tether and Bitfinex, is enthusiastic about how the Bitcoin halving impacts the economy of the Orange Coin: (Assuming “Orange Coin” refers to a specific cryptocurrency.)
The Bitcoin halving is a natural, unalterable occurrence that happens approximately every four years. It serves as a testament to the inherent stability and predictability of the Bitcoin system. Some have likened it to a law of physics.
Following the May 10, 2020, Bitcoin halving event, its price surged approximately sixfold within an 18-month period.
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2024-04-13 18:34