Bitcoin Halving: Success and Future Prospects
Date: 2024-04-22 Author: Oliver Abernathy Categories: BLOCKCHAIN
Bitcoin halving is an event that the entire cryptocurrency industry is watching with great interest. The miners' reward for each mined block was reduced from 6.25 BTC to 3.125 BTC, and this did not go unnoticed. What does the past halving mean and what changes will it bring in the future? Let's figure it out.
Past halving: Action plan and Network reaction
The halving, like the previous ones, went smoothly, without technical glitches. Miners continue their work, mining blocks and processing transactions, maintaining a stable speed. Despite expectations of a possible rush, the total number of transactions and their value remained virtually unchanged. The median commission size also shows minimal growth.
Impact on Market Performance
At the time of the halving, Bitcoin market metrics remain stable, as predicted by former Binance CEO Changpeng Zhao. Bitcoin's price declined slightly, causing slight changes in its market capitalization. The Bitcoin Dominance Index remains stable, and the derivatives market shows a slight decrease in open interest.
Hard times for miners: Challenges and Prospects
Miners are directly affected by the halving. Reducing the block reward reduces profitability and many farms are at risk of becoming unprofitable. However, despite this drawdown, analysts are confident that it will be short-term. Miners may be forced to sell their inventory, which puts pressure on prices, but the decrease in profitability is partially offset by a drop in hashrate.
Optimization and the Future of Energy
Cost optimization becomes the key to increasing mining profitability. Modern equipment and the search for affordable energy sources become a priority. The rising cost of servicing one terahash of computing power is driving interest in renewable energy sources.
Bitcoin halving is not only a reduction in the block reward, but also a challenge and an opportunity for the entire industry. Both miners and investors will be watching further developments based on the indicators and prospects it provides.
