Bitcoin’s much anticipated halving finally took place at 3:23 pm EST yesterday (Monday, May 11th) and the question everyone is asking is where the will price go. Will it go up or will it go down?
Here’s what folks on twitter are saying:
The previous two halvings resulted in an increase in Bitcoin’s price but this time many think biggest impact will be felt by minors.
Experts believe that the halving will cause small to medium-sized mining operations to shutdown due to devices becoming outdated. In fact it’s been reported that unprofitable miners have closed down.
How could it affect the miners in the short term?
A halving happens every four years and is a planned reduction in rewards miners receive.
Occurring every four years and each 210,000 blocks mined since 2009, the bitcoin halving cuts miners rewards in half. This means that in the near term mining will be half as profitable as it was before the halving.
In 2009, miners received 50 Bitcoin per block, reduced to 25 in the first halving, in 2012, to 12.5 in 2016, and will fall to 6.25 tokens in the next.
Miners earn less Bitcoin reward with each halving.
The halving prevents inflation by slowing the pace at which Bitcoin are created, so as to not outstrip demand.
Some experts believe it will make mining unprofitable and cause the price to drop considerably while others believe the value could appreciate due to the supply being more scarce.
Either way we are pro-Bitcoin here at Bob’s Blockchain Café. Happy halving!