Bitcoin production reduction, mining centralization, seize the last chance to get rich in 2020

Bitcoin production reduction, mining centralization, seize the last chance to get rich in 2020

The halving of Bitcoin rewards is a matter of concern to the entire industry in 2020.
★According to the market reaction of Bitcoin halving, a bull market basically starts about a year before the halving occurs, and by the time of the halving, the positive factors are basically exhausted. In the first half of 2019, the price of BTC tripled at most. This wave of market has basically been consumed. Will there be another bull market in 2020?
★A lot of traditional funds have already been involved in Bitcoin. If Bitcoin is to start a big rally again, the amount of funds needed will be different from that of four years ago. In other words, even if market participants have good expectations, they may not have the amount of funds to match these expectations to satisfy the rising market.
★The halving of Bitcoin rewards has also increased the difficulty of mining for small miners, and the shutdown price has doubled. Will this situation bring risks to the mining industry?
The Bitcoin reward halving is approaching, and many questions surround us. How will we face this major industry event?

It is difficult to accurately predict whether there will be a big bull market in 2020. The recent hot spot in the market is the halving of mining coins. To seize the big mining coins, for example, BTC, BCH, BSV, ETC, DASH, etc. have already seen a substantial increase. As the hot spots continue and the rotation effect occurs, the funds in the market are likely to deploy small mining coins that have not yet started in advance, such as AXE, IMG, ZEC, BEAM, SERO, ARRR, ZEL, ZER, ZEN, XZC, QWC, MOG, IOTE, XRD and other small mining coins that also have the halving topic.
Halving has the most direct impact on the output of coins. Assuming that the demand remains unchanged, the price of coins will naturally rise. Due to the expectation of rising coin prices, miners will increase the number of mining machines, resulting in an increase in computing power, which will further increase mining costs. From historical data, each halving has stimulated the rise in Bitcoin prices. The three factors of reduced output, rising costs, and historical trends have made Bitcoin halving the biggest hype in the market. From the current actual situation, both the coin price and computing power have risen.
The bull market has not ended yet, or has just begun. History is always surprisingly similar, but never exactly the same.

A large amount of funds from outside the circle have entered, which may also be a kind of hype in the currency circle.
If we need to start a big market again, we will need a much larger amount of funds than four years ago, but we cannot ignore that BTC's popularity and fame are no longer the same as they were four years ago. This just illustrates the healthy development and growth of Bitcoin. Of course, perhaps BTC will not reach the growth rate of four years ago in this round of market, after all, ETH also helped four years ago.
If a hot spot can be hyped, then it will definitely be hyped. Halving is a very good hype topic, and the price trend at the beginning of 2020 also fully illustrates this point.
For ordinary investors, the next halving opportunities will be more likely to be in undervalued small mining coins.
As the compliance of mining farms leads to increased costs, the Bitcoin reward is halved, and some capital enters the market, the mining industry will become centralized. If the Bitcoin price does not increase accordingly, mining accidents will occur, and small miners will be eliminated first.

The mining industry will definitely develop towards a more professional and centralized direction in the future, and eliminating small miners may be more conducive to the development of Bitcoin.
Today's miners are no longer just mining. Most of them will use various market tools and choose to lock in the price of coins by shorting contracts when the price of coins is high.
In short, the overall situation is still optimistic, but there are many black swans in the market. According to your own investment risk tolerance, you should invest rationally. The short-term price of Bitcoin is difficult to predict, and you should be more determined by the long-term trend. (The currency market is risky, so be cautious when investing)

BSV is officially launched on Spider Mining Pool. Welcome bosses to add Spider WeChat, apply for preferential rates, and start a mining journey with higher returns.

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