Many hope that Bitcoins will be half in the next year, the trigger for another bull rally. It may, however, arise also problems, especially in terms of Bitcoin Mining.
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Bitcoin halving in 141 days
The Countdown to bitcoin runs halving, the date is now on the 14. In may 2020, estimated. The widely anticipated event will bring about a number of things for Bitcoin, such as the reduction of Inflation, the reduction in the per day generated BTC.
Many expect before the event a price increase that was observed in Litecoin at the beginning of the year. According to the Longhash it could, however, different.
If we look at past price actions, it seems that the price increase about six months after the last Bitcoin halving has begun and up to a year later, a pinnacle reached.
Previous Bitcoin-half adjustments from 2012 and 2016, the price peaks seen late in the following years, and in 2017, the youngest was halved.
According to the report, there is not enough evidence to prove that the halving of 2012 caused the rally of 2013, and that the halving was 2016 for the culmination of 2017 responsible, has been largely driven by the ICO-Boom.
After the halving, by 2020, the cost for the removal of a BTC will be more expensive, but the cost of the asset will rise in value, possibly to the same extent. It was invested a lot into Mining, which is reflected in bitcoin Hash Rate, which has reached, according to bitinfocharts.com a new all-time high of 111,84 EH/s.
The use of advanced Bitcoin Mining Hardware and a larger use in the whole of China have driven the increase in Hash-Rate is undoubtedly ahead. Recently, it was also reported that China controls up to two-thirds of the global Hash Rate.
Provinces such as Sichuan, but more than half of the Power in the Bitcoin Mining and small Mining companies around the world.
Unprofitables Mining
If the Hash Rate continues to rise, the BTC price is but after the half at the current level, could decrease the returns for the Mining to continue. The hardware manufacturers like Bitmain and Canaan under pressure.
The latter has experienced since its IPO in November, is already a stock crash of over 40%. Also Bitmain is the latest power struggle at the top is currently in a bad situation.
The price of failure of Pump in the case of bitcoin halving, to adjust the Mining industry in the year 2020, far greater pain.