The Bitcoin halving is drawing ever closer, and we are only eight weeks away from reduced block rewards. Many people are anticipating a significant impact on the Bitcoin price, yet no one knows whether or not that will happen.

The 2016 Bitcoin Halving Is Critical

Over the past few months, community members have been kicking around various topics in the world of Bitcoin and cryptocurrency. Despite the block size debacle, most of the focus has been on the upcoming Bitcoin block reward halving, which sees mining rewards drop from 25 BTC to 12.5 BTC per block.

As a result of this halving, there will be fewer Bitcoins generated on a daily basis, which is a positive thing. However, many people expect the Bitcoin price to go up by a significant margin as of this halving, and there is no indication this will be the case. Granted, Bitcoin usage is increasing year over year, which may be a sign of more people getting interested in using the cryptocurrency.

However, the biggest concern should be whether or not this will impact Bitcoin mining as well. Most miners who do not have access to a data centre or very cheap electricity will see their earnings cut in half, which makes the process unprofitable for a lot of people. That is, assuming the price per Bitcoin does not go up at the same time, although a doubling in price seems rather unlikely at this point.

One Reddit user mentioned how he will be spending a lot more than he can earn in eight weeks from now, and he is not the only one facing a tough decision. At the same time, if miners would drop out, the mining difficulty will adjust and lower over time, which may invite new miners to the plate.

In the end, the Bitcoin halving in eight weeks will have all sorts of effects. Everyone would love a price increase, but it is equally important to recognise this change has a far more widespread effect. Some people are predicting a proverbial bloodbath to take place, which is not unlikely. A significant event is almost upon the Bitcoin community, and exciting times are ahead, regardless of the outcome.

Source: News Tip Via Email

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