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Bitcoin halving and impact on miners

Bitcoin halving and impact on miners

Bitcoin is one of the populars cryptocurrency on the internet and has the highest value on every platform of exchange. Developer who program Bitcoin made it such that every 4 years the blockchain will divide by 2 for the reward of Bitcoin on the blockchain. The first block mind by all Bitcoin miners pay each block was 50 Bitcoin for a block that was solved. It later drops from 50 to 25 the year 2012, and later drop from 25 to 12, 5 each solved on the chain in the year 2016. Bitcoin finally drops from 2 to 12, 5 to 6, 25 this year that is May 2020. So, Bitcoin halving is basically splitting Bitcoin into 2 every four years for each miner on the blockchain. This tells us that the next few years Bitcoin will subdivide again from 6, 25 to somewhere 3, 18 solved or mined by any Bitcoin miner.

On the network a block is

On the network a block is being sold every 10 minutes that means minus will gain 6, 25 Bitcoin every 10 minutes in their accounts. This indicates clearly that miners will lose a huge sum of money that is another 6, 25 Bitcoin which was mined last year. The drops in Bitcoin also cause a drop off 50% in the income of all Bitcoin miners on the blockchain network. It is therefore required for all miners to increase the Hash power that calls for another cost.

Halving put a higher demand on

Halving put a higher demand on the network because the previous Bitcoin trade on the blockchain has been 50% reduced. All individuals who sold a hundred Bitcoins a day are can now sell only 50 Bitcoin a day which calls for extra charges for another 50% from the seller. We all know that increasing demand increases the price of all assets on-the-market hence, increasing the price of Bitcoin for buyers. As compared to 2012 the amount of Bitcoins to be bought by buyers was very affordable as compared to 2016 and is related to 2016 since Bitcoin has reduced in an amount to be mined by all mine is on the network chain.

Bitcoin halving and impact on miners

Reduction in Bitcoin to be mined per the block increases the fee for each transaction make on the chain. Because every individual needs Bitcoin and the supply on the market will be so less to the extent that pressure will come on the network making chain to increase the transaction fee. From the beginning of May Bitcoin transaction fee rising from where it was to about 800% due to the having of Bitcoin. The reason why Bitcoin wallets companies increases the transaction fee is if the transaction fee is very low your Bitcoin process will never be confirmed early. Others are paying a higher amount for it and higher amounts are being attended to before lower amounts as in the fee which was paid by each individual.

One advantage every miner of the chain always looks for is rising in the price of Bitcoin since the demand on the market will increase that causes Bitcoin price making each Miner gets more profit from the least Bitcoin mined. According to history the rising in Bitcoin prices was seen immediately after the halving of Bitcoin at each year on the graph. This indicates that we are expecting Bitcoin to rise to 12000 dollars pay each Bitcoin this year. The rise in the value brings profits to Bitcoin holders since the smaller amount you send will yield a high amount of money in either dollar or other currency. It is therefore prudent for us to keep our Bitcoin for the price to rise before selling them to any trading platform on the internet.

This also causes useless to all old machines which have lesser terabytes per second in the mining of altcoins. An example of such a machine is the s9 and M3; they are now less profitable because of the halving of Bitcoin. So if a minor wants to gain profit he must purchase new miners with high profitability or terabyte per second hash rats. Extra charges are caused because any individual or company who wants to increase the income rate must invest in buying new types of machines with higher profits. The higher the hash rate, the greater the electricity bill which is another negative impact of the halving of Bitcoin.