Will Bitcoin miners be affected by the upcoming Bitcoin Halving?
A new month begins, with April full of uncertainty due to the situation with the Coronavirus. Therefore, questions arise about what will happen to Bitcoin, considering the context and a new mystery, the Halving of Bitcoin.
Bitcoin Halving is one of the most anticipated events in the history of Bitcoin. Sometime in May, the number of Bitcoin (BTC) entering circulation every 10 minutes (known as block rewards) will drop by half. This milestone occurs every four years and has happened twice since the creation of the main cryptocurrency.
In the latest edition of its reports on the state of the network, Coin Metrics argued that Bitcoin was in a spiral of mining capitulation, getting worse before improving.
Even though BTC / USD recovered more than 70% in two weeks since hitting the lows of $ 3,700, prices still “almost certainly decreased below the equilibrium price”For less efficient miners.
This is supported by the recent drop in Bitcoin’s mining difficulty, being the biggest negative move since 2011. Before the mining sector recovers, there is more pain in store. The report suggests that while Halving is approaching, the debate over its impact on asset prices remains mired in controversy.
Which is why even miners wonder what will happen to Bitcoin and its prices. Wondering if the Coronavirus situation will cause Halving to be a more sensitive issue than it already is.
What will happen to Bitcoin after Halving?
Continuing with the topic of Halving, it can be noted that several analysts are confident that Halving will trigger an increase in the price of Bitcoin. Many want to know what the price will be on the half date.
Many fear that the Coronavirus and the global instability it has caused will cause a huge economic recession this April. But there are also those who are optimistic about cryptocurrencies, because it is believed that they will serve as insurance.
Bitcoin’s block rewards will be cut in half soon. In the two previous cases they caused enormous bullish impulses. In this sense, the impact of May is believed to be similar. Bitcoin, continue to work 24 hours, 7 days a week, without pause. However, you must first survive April and the whole context.
This process is automatic and does not depend on the intervention of any of the network participants. Thus the rules established in the protocol make it clear that every 210,000 blocks the mining reward is halved. This helps reduce BTC inflation by lowering its issuance of new currencies. Therefore, it is considered to be a bullish event, which could cause each BTC to have a higher price.
Bitcoin and Visa transactions decrease
Online purchases with Bitcoin (BTC), Visa, and some retail apps declined during the first quarter of 2020, setting the trend for April for cryptocurrency and fiat currency transactions.
According to the publication, Visa predicts a single-digit percentage revenue growth, in contrast to 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 like sheltering at home may be partially responsible, by preventing consumers from passing their Visa cards in person at restaurants, entertainment venues and everything else they do outside of their homes. However, there is also a lack of online spending, including larger travel-related services such as flights.
Since many around the world are quarantined, or encouraged to stay indoors to prevent the spread of COVID-19, it could be assumed that there would be an increase in online purchases and deliveries. However, with rising unemployment and an uncertain economic future, it seems that consumers want to save their money rather than spend it.
For this reason, people are not only wondering what will happen to Bitcoin, but the entire economy.
Trump hints that oil price will drop to $ 9 in April
To end the fast news to greet April, the President of the United States, Donald Trump, has hinted that he expects oil to plummet to just $ 9. After inadvertently announcing Bitcoin (BTC) last week,
At a press conference on March 31, Trump reiterated what has become an inclination for lower oil prices.
The last time oil hit $ 10 was in 1998, when Saudi Arabia also flooded the market to prevent an advance from Venezuela. Bitcoin has limited its year-to-date losses to around 10%.
