Martin Martz | Unsplash
Market corrections often happen frequently, and some are highly anticipated by those looking to accumulate more coins, or at least increase their fractions of Bitcoin because they know that they will be worth more in the future.
We have just surpassed the previous ATH and established a new one, which is very surprising. The speed at which the price of BTC can increase in a matter of hours is one of the characteristics of this leading cryptocurrency, which in turn leads the altcoins, as the behavior seems to transfer to the main coins.
We have seen a price recovery in Bitcoin since March 22, going from $62,700 to $67,000. Considering that Bitcoin's halving is approaching, it is very likely that investors will tend to ensure they hold larger units, knowing that miner rewards will be cut in half.
There are exactly 26 days, 1 hour, and 44 minutes left for this to happen, and this really raises a question for me. What would happen if the BTC price is very low when the halving finally arrives? I am not an expert on the subject, but I imagine that it would be more expensive to secure participation and take advantage of this precise moment. But if logically the expected effect does not occur, people will be disappointed.
Still, this is pure logic considering that with the halving, buying pressure should increase as its price rises. As mining processes become much more difficult, Bitcoin gains more demand, and therefore its price also rises. Then there will be other situations such as ETFs that manage to inject millions of dollars, so in my opinion, we will see prices close to $85,000 at least for the next year.
We cannot guarantee that everything will be as nice as it seems. Marathon Digital Holdings CEO, Fred Thiel, has warned about the difficulties small miners will face after Bitcoin's halving. They will have to deal with some financial strains due to a disparity between them and larger miners, making it challenging to obtain proper financing for scaling. It could result in larger miners strengthening their position in the industry.
Michael Förtsch | Unsplash
Looking at it from a better perspective, the difficulty lies not only in accessing capital for investment but also in energy costs, knowing that the complexity of mining calculations would increase, requiring much more powerful equipment than what is currently available, or at least more accessible at the moment.
Marathon is an important company that has chosen to invest its capital in acquiring two mining facilities, considering them a priority in generating assets for the future. These two facilities were acquired in January, located in Texas and Nebraska.
These two facilities have a mining capacity of 390 MW (Megawatts; not to be confused with the hashrate of a rig), and their acquisition cost was around 179 million dollars. Another acquisition has been announced, placing the mining facility in a wind farm also located in Texas, with a capacity of 200 MW. In this case, the facility belonged to Applied Digital and was valued at 87 million dollars.
With these investments, the company expects to benefit before the Bitcoin halving finally arrives, at which point miners, as mentioned earlier, will reduce the mining rewards from the current 6.25 BTC to 3.125 BTC.
Fried Thiel maintains that 2023 was an excellent year, achieving impressive figures such as revenues of $387.5 million, with a 229% increase over the previous year. He believes that many of the set goals have been accomplished, and without a doubt, the expansion of mining platforms and their performance are heading toward a very pronounced success.
- Main image edited in Canva.
- I have consulted information in cryptonews.com.
- I have used Hive Translator to translate from Spanish to English.
Posted Using InLeo Alpha
I am curious to see what is going to happen after the halving hehehe
It's a real enigma hahaha. Let's see if everything behaves as expected, but new opportunities will surely arise regardless of what happens.
Running a mining farm requires a lot of capital. The energy consumption due tobl the PoW bitcoin standard will indeed shut down miners faced with financial constraint. The halving indeed present opportunities for bigger players and threat (bankruptcy) for smaller ones.
It really is like that! It will be a staging that only the most financially powerful will be encouraged to enter, while small investors will take a big risk.
That's it friend, there i s really going to be a sieving after this halving.
Are you having issues with leoglossary back links because I really am. None of my back links are showing up on inleo front end. Would appreciate your help thanks.
Try using markdown, as it is giving problems when creating links with html.
Sorry friend, don't understand the 'markdown'. A little more explanation, thanks
There are two ways to originate a link and that is through:
This second way is a practical facility or simplicity when modifying text. So to create a link you must simply use this form:
[text you want to display](address of a website)
If you compare to the HTML form it looks like this:
</a href="website address">text you want to display<//a> (Ignore the slashes as I put them in to show the code.)
You can learn more about Markdown here: How to write in Markdown
Thanks so much friend, really appreciate.
Via Tenor
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