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Do miners of Bitcoin will be affected by the next Halving of Bitcoin?
Starts a new month, with April full of uncertainty for the situation with the Coronavirus. Therefore, questions arise about what will happen with Bitcoin, given the context and a new mystery, the Halving of Bitcoin. The Halving of Bitcoin, it is one of the most anticipated events in the history of Bitcoin. At some point in may, the number of Bitcoin (BTC) entering into circulation every 10 minutes (known as rewards in the block) will decrease to half. This milestone occurs every four years and it has happened two times since the creation of the main criptomoneda. In the latest edition of its report on the state of the network, Coin Metrics, he argued that Bitcoin was in a downward spiral of capitulation to mining, getting worse before they get better. Despite the fact that BTC / USD recovered more than 70% in two weeks since I reached the minimum of $ 3.700, the prices are still “almost surely decreased below the equilibrium price” for the miners less efficient. This is further supported by the recent fall in the difficulty of mining Bitcoin, being the largest negative movement from 2011. Before that the mining sector recovers, there is more pain in store. The report suggests that, if though, it is about the Halving, the debate over its impact on the prices of the assets is still shrouded in controversy. Therefore, until the miners are wondering what will happen with Bitcoin and its price. Questioning if the situation of the Coronavirus will cause the Halving is a topic that is more sensitive than it already is.
What will happen to Bitcoin after the Halving?
Continuing with the theme of the Halving, it can be noted that several analysts are confident that the Halving will trigger an increase in the price of Bitcoin. Many want to know what will be the price on the date of the half. Many fear that the Coronavirus and the global instability that has caused cause a huge economic recession this month of April. But there are also those who show optimistic in terms of the cryptocurrencies, because it is believed that they will serve as insurance. The reward per block of Bitcoin will be reduced to half soon. In the two previous cases, led to huge impulses of a bull. In this sense, it is believed that the impact may be similar. Bitcoin, continue to work 24 hours a day, 7 days a week, without pause. However, you must first survive to April, and all of the context. This process is automatic and does not depend on the intervention of any of the participants of the network. As well, the rules established in the protocol make it clear that every 210,000 blocks the reward from mining is reduced to half. This helps to reduce the inflation of BTC, the lower their issue of new coins. Therefore, it is considered that an event that is bullish, you could do that every BTC has a higher price.
Transactions of Bitcoin and Visa decrease
Shopping online with Bitcoin (BTC), Visa and some retail applications declined during the first quarter of 2020, marking the trend for April about the transactions of cryptocurrencies and currencies trust. According to the publication, Visa predicts a revenue growth percentage of only one digit, in contrast with the double-digit growth in the first quarter of 2019, for the second quarter after a sharp drop in activity during march. He adds that measures such as sheltering at home may be partly responsible, by preventing the consumers to pass their Visa cards in person at restaurants, entertainment venues and everything you do outside of their homes. However, there is also a lack of spending in line, including the larger services related to travel, such as flights. Given that many around the world are quarantined, or are advised to stay inside to avoid the spread of COVID-19, one might assume that there would be an increase in the purchases and deliveries online. However, with unemployment on the rise and an economic future uncertain, it seems that consumers want to save their money instead of spending it. For this reason, people not only question what will happen with Bitcoin, but with the entire economy.
Trump insinuates that the price of oil will fall to $9 in April
To end the news fast to get to April, the president of the united States, Donald Trump has hinted that he hopes that the oil will crash to only $9. After announcing inadvertently to Bitcoin (BTC) last week, At a press conference on the 31st of march, Trump reiterated what has become a penchant for the low price of oil. The last time the oil reached the $ 10 was in 1998, when Saudi Arabia also flooded the market to prevent a forward from Venezuela. Bitcoin has limited its losses from the year to date to around 10%.