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Will the Bitcoin Halving Cause more Pain than Pleasure?   

Will the Bitcoin Halving Cause more Pain than Pleasure?   
  • In May, we are set to see the bitcoin block reward halving. 
  • If you had asked me a month ago as to how excited many crypto enthusiasts were for the halving, I would’ve said something along the lines of ‘Highly anticipated’ 
  • However now, it’s looking like more pressure may be put on the shoulders of many bitcoin miners.

In May, we are set to see the bitcoin block reward halving. If you had asked me a month ago as to how excited many crypto enthusiasts were for the halving, I would’ve said something along the lines of ‘Highly anticipated’ however now, it’s looking like more pressure may be put on the shoulders of many bitcoin miners. 

The price action for the leading cryptocurrency has not been helping this.

Head of research at MinerUpdate, John Lee Quigley recently took to the Stephen Livera podcast to talk on some of the implications of the bitcoin price crash on the mining community.

He has said that many miners are working fairly below breakeven and are vulnerable when the price falls and the difficulty increases. He further went on to say “you have little control over these, especially if you’re just operating below the break-even.”

When talking about the recent crash that bitcoin and the rest of the market has experienced, Quigley said the following:

“The 40% close price drop we see on Thursday means a lot of miners now are going to either be operating below, their all in a break-even ROI or for money, they’re going to drop a load of cashflow breakeven, which means they have to shut off the rigs.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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