The highly anticipated event in the world of cryptocurrency is just around the corner – the Bitcoin (BTC) halving. This pre-programmed event occurs approximately every four years and cuts the new supply of BTC in half. The halving will have a significant impact on miners and will reduce the amount of new BTC issued in the market.
In our latest Cointelegraph video, we explore the potential implications of this event for both miners and investors.
Most industry experts do not anticipate the halving to be a cause for concern for the mining industry. Instead, they see it as an opportunity for miners to become more efficient. Miners have had four years to prepare for this event by upgrading their mining equipment and finding locations with affordable electricity.
Will Baxter, SVP at Business Strategy and Development at Braiins, a Bitcoin mining company, predicts that many miners will start diversifying their energy sources. He suggests that they may turn to landfills and use waste for mining Bitcoin. Additionally, he believes that miners will migrate towards stranded energy sources.
Jaran Mellerud, co-founder and CEO of Hashlab Mining, does not expect a significant drop in hash rate after the halving. He estimates that it may only decrease by around 10% or less.
The Bitcoin halving is also expected to impact the price of Bitcoin, just as it has in the past. The supply shock that follows the halving may cause prices to skyrocket, assuming that demand remains constant or increases. Price predictions range from $120,000 by the end of this year to $250,000 by the end of 2025.
However, it is important to note that the halving does not occur in isolation. The overall macroeconomic landscape will play a crucial role in determining the short to medium-term price of Bitcoin. Mike McGlone, senior commodity strategist at Bloomberg, suggests that a downturn in the stock market could put pressure on Bitcoin, despite the halving. He believes that Bitcoin needs to trade more like gold during market downturns to avoid significant losses.
To learn more about how this Bitcoin halving may differ from previous ones, watch the full video on our YouTube channel and make sure to subscribe!