Bitcoin mining difficulty. What should we expect after Halving?

What is BTC halving definition?

Halving is the decrease of the size of the reward to miners for adding a new block to the Bitcoin blockchain. It is known that Satoshi Nakamoto put halvings on the bitcoin network every 210 thousand blocks, that is, about once every 4 years - until the moment when with the extraction of 21 million coins (presumably in 2140) the cryptocurrency emission will be completed. The last halving on block 630,000 occurred on May 11, 2020 at 22:24.

By the way for the sphere of mining and cryptocurrencies in general, an increase in the rate of bitcoin is extremely important.

Small miners will not be able to continue working after halving, representatives of the largest mining pools are sure to do that. It became simply economically unprofitable for them. In the event that BTC in the near future does not go to a significant increase, then the many miners will be turned off and there will be a drop in complexity. Reducing the number of miners in turn reduces the complexity of mining BTC. Cheaper transaction costs will increase their appeal to ordinary users. This will inevitably lead to their increase, and after it most likely to the growth of the Bitcoin exchange rate.

Now infrastructure companies themselves are trying to support the miners. For example, the flagship of the market for miner manufacturers - Bitmain partially compensates for the costs of buyers of new devices that pre-order new, more powerful equipment - ASIC Antminer S19 Pro and S 19. You can now buy these and other models of the entire BITMAIN line from our website mining.ecos.am.

In April, the cost of bitcoin several times exceeded the level of $ 7,000. Currently, it will once again gain a top meaning above $ 9,000.

ECOS analysts will talk about previous halvings. The current BTC price is below the breakeven point of mining. This is good, but not enough for any miner. An important point is that after a short period of time after previous halvings, the price of the leading digital currencies began to grow rapidly and set another maximum

Now is the time to think about investing in this highly profitable digital financial asset.

There were already two Bitcoin halvings in 2012 and in 2016.

First Halving 2012-11-28

• Before the event: the reward was 50 BTC per block
• After: 25 BTC
• Price on the day of the event: $ 12.35
• Price 5 months later: $ 127.00

On this day, the price rose 1.7% - a slight movement. However, the previous and subsequent months showed continued growth and led to the famous rally in early 2013 (from $ 13 to $ 260 in 4 months).

Second Halving 2016

2016 was the second year in history.

• Before the event: reward 25 BTC per block
• After: 12.5 BTC
• The maximum growth rate on the day of events is 657.61 usd.
  2nd halving (07/09/2016): the price reached the bottom 539 days before the event, then increased by 309%
• Price 5 months later: $ 758.81

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Thanks to long-term relationships with leading manufacturers, we are among the first to receive the most modern and efficient mining equipment, which allows our company’s customers to rely on maximum profit.

Halving removes low-power mining farms from the game, which, as the history of the first cryptocurrency shows, positively affects its value in the long term. Central banks can print as many rubles, dollars or euros as they like. The Bitcoin program code contains a maximum mining limit of 21 million coins. Halving protects the BTC from inflation, making it more like gold than regular money.

What will happen after halving bitcoin? Will it weaken the BTC ecosystem?

Well-known cryptanalyst Osato Evan believes that the Bitcoin exchange rate will reach a new historic high of $ 20,000 as early as this 2020. His forecast is based on historical facts. Bitcoin has been halved twice already, and after each date, the price of the coin only increased.

Brave New Coin CEO Fran Strainer is even more optimistic. According to his forecast, by the end of 2020, digital gold will be sold at $ 200,000 per coin. Brave New Coin analysts cite the inverse proportion between supply and demand. Bitcoin is becoming increasingly popular and a reduction in the output of coins will lead to their deficit and increase in value.
Of course, no one can 100% accuracy of certain predictions, but the general trend in the digital currency market indicates a strengthening of bitcoin. No alternative cryptocurrency can compete with Bitcoin yet.

Conclusion

Halving is an important event for the entire crypto community. Its consequences are significant. They remind us of the end of bitcoin mining and the predictable, but the creation of a deficit of this cryptocurrency. Halving 2012 and 2016 led to an increase in the cost of bitcoin by 9 and 3 thousand percent, respectively, and all investors naturally expect at least a smaller (up to 1000%), but an increase in bitcoin in the price. The availability of technology to the ordinary user makes mining easier and more understandable. With the growth of the productivity of mining equipment, the profitability of mining as a passive investment and generating income in the new sector of the digital economy becomes urgent.