The Bitcoin network is more secure than ever, but there is a trap

Bitcoin (BTC) price has risen sharply over the past year among other things from the banking crisis and the possible arrival of Spot exchange traded funds (ETFs). With Bitcoin Hashrateor the entire computing power of all miners combined, things are probably going very well has to do with the upcoming Bitcoin halving. The benchmark set another record on Sunday.

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Miners are preparing for the Bitcoin halving

Data from BitInfoCharts shows that the hashrate reached 538 exahash per second (EH/s) on Sunday. This is another record – the sixteenth record since the beginning of this year. At the beginning of this year, the value was below 204 EH/s, an increase of more than 169%.

The increase means competition for Bitcoin miners is fiercer than ever. This is likely not only because Bitcoin price has reached its highest level in more than a year, but also because the next Bitcoin halving is expected to take place in April next year.

After that, miners will only receive half as much BTC if they successfully redeem one block to produce. Now there is an even higher “tariff”, so to speak, which the miners are apparently happy to take advantage of. At the time of writing, miners earn 6.25 BTC per block, which is worth about $230,000 at the current rate. After the halving it will only be half.

Bitcoin Halving Positive or Negative?

This means that the profits are significantly lower. It is estimated that producing 1 BTC costs more than $30,000 for most miners. Many analysts therefore expect the next year to be difficult for mining companies. American investment bank JP Morgan expects many miners to go bankrupt as profit margins fall next year.

At the same time, there are also analysts who believe that the halving will not be so negative since the event also ensures that the supply entering the market is halved. If demand stays the same, that means the price will rise.

According to some, the next bull market has actually already begun this year. Former Dutch institutional trader PlanB and Delphi Digital CEO Kevin Kelly both believe this to be the case. We’ll find out the answer next year.

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