The increase in the total network computing power has pushed the Bitcoin halving to be "earlier" than expected

Bitcoin, the cryptocurrency with the largest market value, will undergo its third block reward halving in history next week. However, due to the increase in the computing power of the entire network, the Bitcoin halving event may be "earlier" than expected.

According to Coindesk, Michael Maloney, chief financial officer of Coinmint LLC, a Puerto Rico-based crypto mining company, estimated based on data on the Bitcoin blockchain that the halving will take place at 1 a.m. New York time on Tuesday (May 12), but he now expects that the halving may occur at 7:45 p.m. New York time on Monday (May 11).

This may be related to the current surge in Bitcoin network computing power. As Bitcoin prices soared to over $9,000 recently, many miners have upgraded their mining machines to faster and more advanced versions. This has led to a faster confirmation of new data blocks on the distributed network.

“The price of bitcoin went up, so a lot of people started to move. That’s why it went faster,” said Dave Perrill, CEO of Compute North, a crypto mining company in Minneapolis.

Some investors say the halving is a catalyst for the rise in Bitcoin prices, but the rally has been long-lasting over the past few months rather than instantaneous. Other analysts believe the impact of the halving is exaggerated, but the hype about the halving could push up prices.

It is generally believed that the main mining machine S9 of the mining machine giant Bitmain will be eliminated after the halving. Since the income will drop by half, miners will have to spend about twice as much electricity to obtain the same amount of Bitcoin.

However, Maloney said that due to the market trough caused by the COVID-19 pandemic in March, many older generation miners have been off the network since then. But the recent rise in Bitcoin prices has brought older generation cryptocurrency mining equipment back online, hoping to extend their profitable period before the block reward is reduced.

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AuthorLiang Che

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