Tuesday, December 14, 2021

What are the effects of BTC halving?

⚒️ On miners

Bitcoin mining is known as one of the most effective ways of acquiring fractions of Bitcoin firsthand. On the flip side, running a mining operation can be really expensive, depending on whether you’re a solo miner or part of a mining pool. Either way, you’ll need high-powered mining equipment and specialized software that can cater to the tedious and costly processes of acquiring fractions of Bitcoin.

For some miners, the sudden decline in mining rewards may sound less profitable. Because of the massive amount of investment they made in the powerful mining machines they’ve built, the diminishing amounts of rewards per block might not be enough to cover their mining operation’s expenses. However, it’s also important to note that this might not be the case all the time for every miner because of Bitcoin’s highly volatile nature. 📊 On traders

While some miners don’t always love the idea of Bitcoin halving, this event is very much awaited by Bitcoin enthusiasts, traders, and investors. Why? Because in this period in the crypto world, the number of coins generated by miners is reduced. This means that the limited number of acquired coins paves the way for BTC’s price to soar if the market demand increases. The higher demand and the limited supply of this digital asset can bring more market opportunities for traders to sell BTC at higher prices.

While we saw this promising trend from the first to the recent Bitcoin halving events, it’s still important to keep in mind that this volatile asset can appreciate or depreciate swiftly—depending on the market movements that may happen. 📈 On BTC’s price

We mentioned earlier that Bitcoin halving could push up its market price. However, this doesn’t always happen and we aren’t a hundred percent sure about how high the price will be. There might be a towering price after days, months, or even years, and there might also be price dips in between.

Additionally, will there be more interested folks outside the crypto world after the halving? Will there be another bull run? Will there be new traders in the market? These are just some of the many questions that might come to one’s mind, but then again, we’ll just have to wait and see to which direction will Bitcoin’s price go.


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