Bitcoin Halving Dmitry Fedotov

Bitcoin halving, whale consolidation, mining issues

A short version of my opinion on Bitcoin (BTC) halving and surrounding factors to consider:

Bitcoin halving is currently estimated on 12 May 2020 at 09:32:45 (countdown)

If you need to understand what halving means I suggest reading this.

A few critical factors:

  1. There is a reasonable incentive for consolidation of larger amounts of BTC by whales;
  2. Movements of BTC from idle wallets to exchanges are increasing:
    1. Follow Whale Alert
    2. Graph on right shows an example of liquidity in form of stable coins being distributed  among exchanges

      stable coins being put into exchanges
      stable coins being put into exchanges
  3. Coronavirus (COVID-19) resulted  in a difficulty upgrading crypto mining equipment after the epidemic prompted Chinese authorities to impose a quarantine and major mining equipment makers delayed production and shipments;
  4. As a result, miners have to deal with a constantly increasing difficulty of mining AND sharp decrease in mining reward;
  5. Historically, halving of BTC (as well as LTC, BCH, ETH) had a limited impact on hash rate and price. In most cases resulting in drop of both
    bitcoin halving history price chart
    Bitcoin halving history price chart

     

 

A very useful collection of opinions provided by Paul McNeal

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