As you approach the planned reduction of the remuneration of miners, users are concerned about the possible consequences.
Bitcoin has already twice experienced halving in November 2012 and July 2016. Both times these events marked the beginning of a bullish run. But users are concerned as the next halving could affect the current situation on the market?
Jihan Wu, co-founder and former CEO of Bitmain configured “pessimistic”. He suggests that the first two ascending trend was “catch-up cycles of bubble and bust”. In addition, he pointed to the reduction in the cost of litecoin in August. The price of the token increased from 31 to 135 dollars in the first half of the year, but then in July fell twice. Now it is trading at $ 57. He said
There is too much speculation ahead of the next halving. Maybe this time the bullish run does.
Matthew Roszak, the company’s Chairman Bloq involved in the development of the block chain, thinks otherwise. Roszak expects that the price will reach approximately 15,000 – $ 100,000, and then comes the stage of “a decade of growth.”
Anyway, with a decrease in the reward will lead to lower profitability, at least in the short term, so the old version of the ASIC will no longer bring their owners any profit.
CEO of Genesis Mining, Marco Streng stated that the lesser amount of equipment in circulation will benefit the industry in the long term. He said
Halving is a very serious event because the most inefficient miners will be eliminated. This is a psychological event that can trigger the growth of prices.
According to Strand, the main effect of halving will be the destruction of individual small miners, which now occupy less than 20% of the market.
Alexander Gavrik, one of the founders of the company Uminers, believes that the market will be less volatile, since the major players will become more powerful:
The market is moving towards industrial mining and small miners will be less. Now the market is much smaller crypto-enthusiasts.