The next 'halving' of the BTC block reward, expected to take place in mid-2024, would further reduce margins and squeeze out smaller miners struggling to make a profit from their existing operations.
Industry players behind the BTC software control the hash power, while companies with weak cash positions and low debt suffer, cementing BTC's position as a 'very, very' centralized system.
According to Cambridge Centre for Alternative Finance’s BTC mining map, US overtook China as the country with the majority of the hash power supporting the BTC network.
Although the drop in hash rate will have a negative consequence on the digital currency markets in the short term, there are a few positive externalities that will come out of China’s ban on Bitcoin mining.
Industry watchers have noticed that hashrate emanating from North American has been increasing, eroding the centralized collective market share that Chinese competitors once held.
A rogue block reward miner could recreate the entire hash rate of Bitcoin from its birth until the end of 2017 with 50% of the current BTC hash rate in only a matter of weeks.
The BTC halving has set off a domino effect on block reward miners that will end with many unable to continue.
What role did BTC miners and insiders play in the retreat back into positive price territory? It's an interesting question to consider.
After the block reward subsidy is reduced, some industry experts warn that the ecosystem may no longer be profitable enough to sustain the current hash rate.
Jon Southurst explains why it's important to understand all the issues surrounding the Bitcoin ‘halvening’, including those unique to this year.
Bitmain-affiliated ViaBTC pool has launched one-click switching, which allows members to switch hashrate between mining BTC, BCH and BSV seamlessly.
