The halving of Bitcoin's block reward once again showed people its scarcity in a timely manner. This cryptocurrency leader has experienced two halvings in the past, and the third will also happen in more than a month. Most investors predict that the price of Bitcoin will soar within half a year of 2020. The recent price plunge not only increased investors ’concerns, but also affected the nerves of the Bitcoin miner community.
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Genesis Mining CEO Marco Streng detailed in the latest issue of the Crypto Conversation podcast how the upcoming halving will affect the miner community. He emphasized that for “people who take mining seriously”, the upcoming halving of block rewards is not an “unpredictable event”. Strong talked about the recent price collapse of cryptocurrencies, the global economic uncertainty caused by the new crown COVID-19 epidemic, and the crypto halving event:
"I think this halving will reshuffle the mining sector. Obviously, halving will lead to more integration, which will really stimulate the enthusiasm of miners, promote their innovation, and continue to improve efficiency."
When asked if he agrees that Bitcoin mining is a "furious game of consumption", Strong points out the inherent competitiveness of the Bitcoin mining ecosystem, he said:
"In the field of mining, miners are competing for minutes and seconds in the process of manufacturing, sales and transportation. You want them to go online early and let them mine early. These are all brain-wracking things. Planning issues can't keep up with changes. "
A recent BitMEX report analyzes the impact of the upcoming halving event and predicts that the computing power of the Bitcoin network will likely drop by 29% after the halving. The report writes:
"If you don't consider the impact of transaction fees, the impact of halving on miners should be almost exactly the same as the sudden drop in Bitcoin price by 50%. One might think that the sudden drop in Bitcoin price by 50% means that the mining scale should be reduced. 50%. This is correct in terms of industry revenue. After halving, under other conditions the same, mining revenue should fall by about 50%. Therefore, this may be a very challenging challenge for the industry Sexual period. "
Bitcoin hashrate ｜ Source: Glassnode
In more than a month, Bitcoin's computing power dropped from 127EH / s to 109EH / s, which caused people to worry about the fate of Bitcoin after the halving. Strong emphasized that in this case, miners need to have a sense of "leading", and efficient miners can take advantage of the halving, he added:
"Some miners will suffer losses, their operations will be unprofitable, and they will have to quit these businesses. When they quit, Bitcoin computing power will decline and the difficulty of mining will also decrease. Those miners who stay on the market , Their market share will become higher, thereby making up for the loss caused by the reduction of block rewards. "