Bitcoin Mining Reward Reduising Doesn’t Affect The Market Much
Mao Shixing, founder of F2pool believes that the next halving of the reward in the Bitcoin network (BTC), which will occur according to preliminary estimates in May 2020, will not have a significant impact on the cryptocurrency market.
In an interview to Jinse finance, Mao stated:
“We mentally prepare ourselves for Bitcoin’s next halving, so the event is expected to have little impact on the Bitcoin ecosystem. In addition, the nanometer-size chips used to mine cryptocurrencies will increase the lifecycle of mining rigs and the investment model of the mining machine will be different then.”
According to the Bitcoinblockhalf website, the next Bitcoin halving will occur in May 2020. For each block, miners will get reward 6.25 BTC (instead of 12.5). Some experts believe that this will lead to a decrease in the Bitcoin value, however, the story suggests the opposite: after reducing the awards on December 28, 2012 and July 9, 2016, the price of Bitcoin has steadily increased. At the time of the first halving, BTC cost $ 12.22, and during the second, $ 657.61.
Mao Shixing refused to make a forecast for the rate BTC, however, he spoke about the current situation in the mining industry. According to him, many mining companies, including F2Pool, count losses. In order for BTC mining to start making a profit, the coin must rise to a certain value and cover the costs of cryptocurrency mining.
The study conducted by Northern Bitcoin company demonstrates the cost of mining 1 BTC in different countries (depending on the price of electricity): in Norway - $ 7,700, in China and Saudi Arabia - $ 3,100, in Canada - $ 4,000.