The highly anticipated event in the world of cryptocurrency is just around the corner – the Bitcoin (BTC) halving. This is a pre-programmed event that occurs approximately every four years and cuts the new supply of BTC in half. As a result, it will have a significant impact on miners and the amount of new BTC issued in the market.
In our latest video on Cointelegraph, we explore the potential implications of this event for both miners and investors. While many industry participants do not view the halving as a cause for concern for the mining industry, they see it as an opportunity for miners to improve their efficiency.
Miners have had ample time to prepare for this event by upgrading their mining rigs 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. They will explore options such as using landfill waste for Bitcoin mining and migrating towards stranded energy sources.
Jaran Mellerud, co-founder and CEO of Hashlab Mining, believes that the hash rate will not experience a significant drop after the halving, estimating it to be around 10% or less.
However, the Bitcoin halving will likely have an impact on its price, as it has in the past. Following the halving, the supply shock may cause prices to surge, assuming that demand remains constant or increases. Price predictions for Bitcoin vary, with some experts suggesting it could reach $120,000 by the end of this year and $250,000 by the end of 2025.
It’s important to note that the halving does not occur in isolation. The macroeconomic landscape will play a crucial role in determining the short to medium-term price of Bitcoin. Senior commodity strategist at Bloomberg, Mike McGlone, 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 drawdowns.
To gain further insights into how this Bitcoin halving may differ from previous ones, watch the full video on our YouTube channel. Don’t forget to subscribe for more content!