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U.Today – As the fourth halving (BTC) approaches, cryptocurrency analysts are releasing various predictions about its possible impact on the digital asset market. While most predictions are optimistic, some theories could sound alarming to miners.
“Many will suffer”: Charles Edwards on the Bitcoin (BTC) halving.
In general, the miner reward halving is great for Bitcoin (BTC) and the entire cryptocurrency segment in the long run. At the same time, the short-term consequences could be painful for some players in the BTC ecosystem, says Charles Edwards, founder of Capriole Investments, on X.
In particular, the fourth Bitcoin (BTC) halving appears to be dangerous for miners with old-generation hardware. Some of them will “go bust” this year, Edwards admits.
The fourth Bitcoin (BTC) halving is expected to occur on April 19, 2024 at approximately 1:53 p.m. UTC, once the largest cryptocurrency reaches a block height of 840,000.
Mining rewards will decrease from 6.25 BTC per block to 3.125 BTC per block. Therefore, some miners with less energy efficient hardware could go underwater in the next cycle.
For example, some estimates show that Bitmain Antminer S19, one of the most popular generations of ASIC miners for SHA-256 coins – BTC, LTC and others – will only be profitable after the halving if the BTC price is above $80,000 lies.
Paolo Ardoino calls the BTC halving “poetic”, here’s why
Bitcoin's (BTC) halving mechanism is firmly anchored in the technical design of the first cryptocurrency. It reduces BTC emissions by half every 210,000 blocks, or roughly every four years.
This makes Bitcoin (BTC) a more scarce asset, which, combined with the limited net supply, makes it more economically valuable.
Paolo Ardoino, CTO of Tether and Bitfinex, is enthusiastic about the role of the BTC halving in the tokenomics of the orange coin:
After the previous halving on May 10, 2020, the price of Bitcoin (BTC) increased by almost 600% in just 18 months.
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