Countdown to Bitcoin Halving. Are you ready?
The Bitcoin halving is coming in mid July 2016. What will it mean for holders of cryptocurrency?
What will happen?
The miners will receive a smaller payout for their efforts. However, their expenses will remain the same. So in order for them to stay profitable, they must devise another strategy.
With some of the biggest mining operations in China, I don't expect them to sit around and watch their profitability be severely restricted. I don't know what else they can do. However, it will be interesting to see what they come up with.
Predictions
Will Ethereum, Litcoin, or Dash become the focus of the miners? Oh wait, Bitcoin uses a different mining algorithm than those coins. Will the miners pick another SHA256 based coin to mine that will be more profitable? If so, which is the best candidate?
I recently read about a new optimization that allows the miners to gain up to 30% performance improvement. Will this be enough to keep the miners profitable?
Will several Chinese miners be force to shut down their mining operations? If so how would this affect the price Bitcoin and other digital currencies?
Takeaways
Holders of Bitcoin and other digital currencies will be watching the developments very closely. This Bitcoin halving event could cause the price to drop very quickly. All cryptocurrencies may fall in value as well, if the Bitcoin price drops dramatically.
What do yo think will happen? Let me know your thoughts?
Here is my prediction:
We have seen these catastrophic resonance effect of sudden difficulty adjustments a number of times in various altcoins (PTS, for example). That's why Gravity Well algorithms were invented.
Bitcoin is well-known for not being able to react to changes in its environment. This will be its final mistake.