About a third of Bitcoin (BTC) mining firms may already be switching off their machines as the business becomes unprofitable due to a reduction in mining rewards.

The third Bitcoin halving – consummated earlier today – reduced supply of the pioneering cryptocurrency, cutting the bonus paid to miners for solving mathematical puzzles that underpin the network by 50% to 6.25BTC per block.

According to Alejandro De La Torre, VP at mining pool Poolin, miners who make up between 15% to 30% of the entire BTC network hashrate are already in the process of shutting down as profit margins come under pressure.

Those companies operating inefficient “old generation” mining rigs, such as Bitmain’s S9 miner, on higher electricity costs, will be most affected, he opined.

“The … final difficulty adjustment with the 12.5 BTC block subsidy will occur one week before the halving (1008 blocks), and the difficulty is projected to increase,” De La Torre wrote in a recent analysis, adding:

We expect that the first 1008 blocks after the halving will be mined slowly as huge numbers of unprofitable miners drop off the network. We estimate around 30% of the entire Bitcoin network will be squeezed considering that the first 1008 blocks will have the pre-halving difficulty, but half the reward.

Miners are facing pressure from the periodic halving, as the event will affect revenues for mining companies a great deal.

Some experts argue that the revenue decline might be compensated by a spike in the price of BTC – a feat generally associated with previous halving events. However, if the price drops, less efficient miners will be squeezed out faster.

De La Torre said “mining is a long game about survival” and firms that fail to move to more efficient mining machines or to find cheaper electricity will “capitulate”.

“While we expect most of these miners will shut down after the halving, it is likely that some of them have cheap enough electricity to survive in the near future,” he stated.

The Bitcoin mining reward has dropped from 50 in 2009 to 25 in 2012; 12.5 in 2016 and then to 6.25 this year (all in BTC), in a pre-determined, inalterable supply cut every fourth year, meant to keep inflation in check

by Jeffrey Gogo

Bitcoin (BTC) may not have pumped at the scale expected by many halving optimists, but Wall Street billionaire Michael Novogratz insists that the price will hit $20,000 by year-end.

The Galaxy Digital founder and chief executive officer on Monday told CNBC that bitcoin’s surge was inevitable in light of the record money printing by world central banks.

“The (Bitcoin) halving was quantitative tightening,” Novogratz explained, noting the new coronavirus inspired stimulus packages, which have pumped trillions of dollars into world economies overnight.

“It’s like an exclamation point on the macro story of why scarce assets like bitcoin should go higher. We will take out $10,000 and we will go to $20,000 by the end of the year. I feel real confident about it,” he asserted.

BTC fell as much as 1.4% to $8,620 in the wake of its third halving last night. Pre-halving expectations favored a significant price increase.

The cryptocurrency rose past $10,000 in the run-up to the event, which cut miner rewards by 50%, as investor sentiment reached fever-pitch.

However, the price dropped at least 15% over the weekend, briefly touching $8,250, in a sell-off some analysts have described as market manipulation by the so-called bitcoin whales.

At the time of writing, each BTC was trading at $8,800, up 6% over the last 24 hours, according to data from markets.bitcoin.com.

Novogratz said he did not participate in the sell-off, but reckons that Paul Tudor Jones, the billionaire hedge fund investor, entering the space signifies growing interest in cryptocurrency from institutional investors.

“We had a little bit of retail frenzy that got sold off. I would expect the market to hold at $8,000, $8,500 and to start trading right back up,” he predicted, adding:

We are seeing at our shop huge increase in interest in bitcoin from high net worth individuals, from funds. The Tudor (Jones) bitcoin news is very big news. It somehow takes the career risk of looking dump out of buying bitcoin.

Despite the post-halving slid, the outlook for bitcoin markets generally remains upbeat as the supply of news coins slows down.

Pantera Capital CEO Dan Morehead recently forecast that BTC had a 50% chance to spike to $115,000 by August next year, as fiat depreciates from stimulus packages.

by Jeffrey Gogo

India’s cryptocurrency sector is booming during the extended nationwide lockdown. Several Indian cryptocurrency exchange executives have shared with news.Bitcoin.com their record-breaking stats, bullish trends, and positive sentiment despite the coronavirus-driven lockdown.

Growing Interest in Cryptocurrency in India as Lockdown Extends

India recently extended its nationwide lockdown by another fortnight due to the coronavirus outbreak. While lockdowns have crippled many economies worldwide, the Indian crypto sector is seeing significant growth in interest, trading volumes as well as the number of new users, according to several crypto exchange executives.

“I’m seeing more people wanting to spend their time under lockdown in learning and understanding what crypto is, how it works, what are the use cases of various crypto tokens etc.,” Nischal Shetty, CEO of cryptocurrency exchange Wazirx, shared with news.Bitcoin.com on Monday. “People in India are more upbeat about crypto,” especially with the recent cryptocurrency price increases, he described, reiterating the positive trend he observed in April. The Wazirx CEO elaborated:

The extended lockdown has led to people showing even greater interest in crypto in India. With millions of people not having the opportunity to work due to lockdown, crypto is turning out to be an opportunity for Indians to trade and earn from it.

Sathvik Vishwanath, CEO of cryptocurrency exchange Unocoin, shares the positive sentiment. “Given the crypto industry has opened up two months ago, I would say the industry is happy in spite of lockdown,” he told news.Bitcoin.com on Monday. “This situation is a lot better than the one we faced due to regulatory confusion for two years.”

Zebpay chief marketing officer Vikram Rangala sees a similar trend at his exchange. “The extended lockdown has not hurt Zebpay’s business,” he told news.Bitcoin.com. “More likely, being at home gives people time to download our ebooks, learn about crypto, and decide to join Zebpay.” He continued: “We decided to start working remotely even before the lockdown and were already working on work-from-home flexibility, so we were able to adapt quickly … We’ve also been hiring new people at the same rate we would have without the lockdown.”

Crypto Exchanges Hit Record-Breaking Volumes

All three crypto exchange executives are seeing record-breaking volumes on their trading platforms. “Our trading volume has been increasing rapidly week over week,” Wazirx’s CEO confirmed. “In fact, this week we recorded one of our highest daily trading volume of over $10M.” He additionally revealed, “Our user signups have also shot up tremendously. We also hit an ATH for our weekly active users number last week,” adding:

Our trading volume before the lockdown in India used to be around $1M. It has grown over 10X in just 60 days.

Sharing the positive sentiment, Zebpay’s CMO said: “just last week we had another record volume (since our January relaunch) day. New registrations and KYCs are also doing well. We’ve added staff and automations to handle the KYC load and new deposits. Other Indian firms also seem to be active and doing well.” He opined: “One thing is clear from everything we’ve seen: India’s crypto winter only increased people’s interest in sound digital assets and new ways to take control of their wealth. That’s not going away.”

There are also other factors that could have resulted in increased interest in cryptocurrency as well as trading volumes in India. Unocoin’s CEO pointed out that “both the pandemic and the regulatory clarity happened at the same time in India.” It was only in March that the Supreme Court of India quashed the banking restriction that the central bank, the Reserve Bank of India (RBI), imposed on the crypto industry in its April 2018 circular. During the court hearing, it was also reiterated that cryptocurrency is legal in India. Following the supreme court ruling, crypto exchanges began bringing back INR support. Vishwanath confirmed that on his exchange:

The present volumes are definitely 10X than before these two events.

He concluded that the only question now would be “would we have done better with just regulatory clarity but not the pandemic and I think it might have been marginally better. Only time will tell.”

 

A court in Shanghai, China, has reportedly ruled that bitcoin is an asset protected by Chinese law in a case that has dragged on for years. The case involves a theft of two different cryptocurrencies, one being bitcoin, from an American. The defendants argued that bitcoin was not recognized under Chinese law; the court disagreed, citing documents by the central bank, the People’s Bank of China (PBOC).

In China, Bitcoin Is Asset Protected by Law

Shanghai No.1 Intermediate People’s Court has reportedly ruled on a bitcoin case that has dragged on for multiple years, Chinese media reported on Thursday. The case involved three Chinese and a Malaysian who broke into the home of an American and his Chinese wife on the night of June 12, 2018, East China daily media Shine detailed. After locking the couple up and beating them, the intruders forced them to transfer 18.88 bitcoins and 6,466 skycoins to their account.

The first hearing of this case found that there was an economic dispute and the perpetrators were sentenced to prison for six and a half months to eight months. The defendants agreed to give all the skycoins back but not bitcoins, arguing that cryptocurrencies were not assets under Chinese law so the couple did not have the right to demand them back. The court disagreed and ordered them to return all the cryptocurrencies they took from the couple or pay them what the coins were worth. When the couple received neither the bitcoins nor the equivalent funds, they filed a lawsuit.

The four defendants appealed, reiterating that cryptocurrencies, including bitcoin and skycoin, were not legal property under Chinese law. However, Shine news outlet reported on Thursday that the Shanghai court has ordered them to return the coins, adding:

The court found bitcoin to be a digital asset that should be protected by law.

Liu Jiang, the chief judge in the case, explained that the documents released by the central bank, the People’s Bank of China (PBOC), have never denied bitcoin as an asset and the laws in China do not prohibit citizens from holding them.

Several other Chinese courts have made a similar ruling on cryptocurrency. For example, the Shenzhen Court of International Arbitration recognized cryptocurrencies in a case involving 20 bitcoins, 50 bitcoin cash, and 13 bitcoin diamond in 2018. Last year, the Hangzhou Internet Court also legally recognized bitcoin. Recently, the Shenzhen Futian District People’s Court in Guangdong Province declared ethereum legal property in China.

by Kevin Helms

Qu’est-ce que le halving du Bitcoin ?

De nouvaux bitcoins sont émis par le réseau Bitcoin toutes les 10 minutes. Au cours des quatre premières années de l’existence du Bitcoin, le total de nouvaux bitcoins émis toutes les 10 minutes était de 50. Tous les quatre ans, ce nombre est divisé par deux. Le jour où le total est divisé par deux est appelé « halving ».

En 2012, le total de nouveaux bitcoins émis toutes les 10 minutes est tombé de 50 à 25 bitcoins. En 2016, il est tombé de 25 à 12,5. Avec le halving 2020, il tombera de 12,5 à 6,25.

Que signifie le halving de la blockchain Bitcoin ?

Le halving réduit le total de nouveaux bitcoins générés par bloc. Cela signifie que l’approvisionnement en nouveaux bitcoins est moins important.

Dans les marchés dits normaux, une offre réduite avec une demande soutenue entraîne des prix plus élevés. Sachant que le halving réduit l’approvisionnement en nouveaux bitcoins et qu’en général la demande reste soutenue, le halving coïncide aux cours les plus importants que le Bitcoin ait connus.

Dans l’image ci-dessous, les lignes verticales vertes indiquent les deux halvings précédents (les 28-11-2012 et 9-7-2016). Vous remarquerez à quel point le prix a augmenté à la suite de chaque halving.

Halving du Bitcoin : graphique

Dans l’image ci-dessous, vous pouvez voir le taux d’inflation du Bitcoin au cours de chaque période.

Chaque halving diminue le taux d’inflation du Bitcoin. La ligne orange est le taux d’inflation du Bitcoin au cours d’une période donnée, tandis que la ligne bleue représente le nombre total de bitcoins émis.

Halving du Bitcoin : calendrier

Le halving du Bitcoin est programmé en hauteur de blocs, et non en date.

Le halving se produit tous les 210000 blocs. Le halving 2020 se produira à l’apparition du bloc 630000. Le halving 2024 se produira à l’aparition du bloc 840000.

Quelle est la conséquence d’un halving pour les mineurs ?

De nombreuses personnes spéculent que les mineurs fermeront boutique à la suite du halving. En réalité, la plupart des mineurs sont très intelligents ; ils parviennent à fixer leurs prix en fonction du halving, ainsi ils ne se retrouvent pas à devoir fermer boutique.

Quand aura lieu le halving du Bitcoin en 2024 ?

Le halving 2024 aura probablement lieu entre mars et juin 2024.

Halving du Bitcoin : les dates précédentes

Cette section examinera les deux halvings précédents.

Halving 2012

Le halving de la blockchain 2012 fut le premier halving. Il a été miné par SlushPool, par une personne utilisant un mineur Radeon HD 5800.

• Nouveaux BTC par bloc avant : 50 BTC par bloc
• Nouveaux BTC par bloc après : 25 BTC par bloc
• Prix le jour du halving : 12,35 USD
• Prix 150 jours plus tard : 127,00 USD

Halving 2016

Le halving 2016 fut le deuxième halving.

• Nouveaux BTC par bloc avant : 25 BTC par bloc
• Nouveaux BTC par bloc après : 12,5 BTC par bloc
• Prix le jour du halving : 650,63 USD
• Prix 150 jours plus tard : 758,81 USD

Subvention actuelle de la blockchain Bitcoin

La subvention actuelle de la blockchain Bitcoin est de 12,5 bitcoins par bloc. Lorsque le bloc 630000 sera atteint en 2020, la subvention tombera à 6,25 bitcoins (BTC) par bloc.

À quelle date les 21 millions de Bitcoins seront-il minés ?

Les 21 millions de bitcoins (BTC) seront minés d’ici 2140. Mais plus de 98 % seront minés d’ici 2030.

Un halving de la blockchain Litecoin est-il prévu ?

Oui, jetez un coup d’œil à ce site. Il est prévu que la blockchain Litecoin fasse l’objet d’un halving dans quelques années.

Un halving de la blockchain Ethereum est-il prévu ?

La récompense de bloc Ethereum ne peut être réduite de moitié à l’image de celle du Bitcoin, donc ce n’est pas prévu.

Le halving est-il nécessaire ?

Le halving est nécessaire. C’est la façon dont Bitcoin contrôle son approvisionnement. Une fois que la subvention de la blockchain arrive à expiration, les frais de transaction paieront les mineurs pour sécuriser le réseau.

By  https://www.buybitcoinworldwide.com/

After the halving, crypto exchanges selling Bitcoin, which they collected in trading fees, may pose the biggest threat to the ongoing Bitcoin rally as miners earn less BTC.

Following the Bitcoin (BTC) halving on May 12, traders generally expect the price of the top-ranking cryptocurrency by market capitalization to drop. According to a prominent on-chain analyst, the selling pressure may come from crypto exchanges.

Willy Woo, the co-founder of Hypersheet, said that exchanges will likely begin selling their storage of crypto assets composed of trading fees. Typically, exchanges receive trading fees in the form of cryptocurrencies and sell them to cover operational costs.

Considering that the crypto exchange market generates 1,200 BTC a day from fees — equivalent to $11.6 million — it may slow down the uptrend of Bitcoin.

Selling pressure that comes from crypto exchanges may spoil Bitcoin recovery

Subsequent to the Bitcoin halving, miners will generate half of the BTC they used to in the past four years.

On a daily basis, the revenues of miners will decline from 1,800 BTC to 900 BTC, based on rough estimates released by Woo.

When the revenues of miners get cut by half, the mining sector will earn about 33% less BTC than the cryptocurrency exchange market. As such, the risk of a major sell-off post-halving comes from exchanges more than miners.

Woo explained:

Post this 2020 halvening miners will cease to be the biggest sellers of Bitcoin. It’ll be the dawn of the crypto exchange as the leading seller. The biggest sell pressure on Bitcoin will soon be from exchanges selling their BTC fees collected into fiat.

He emphasized that the term “selling pressure” is often misused in the cryptocurrency market. When individual traders sell or buy Bitcoin in the exchange market, the orders are matched with one another. It is difficult to categorize such trades as sell or buy volume.

Instead, he noted that there are two main sources of selling that affect the market: miners and exchanges.

The analyst said:

There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.

But, some argue that the market is likely to be pricing in the pressure of exchange fee-to-cash conversion.

Prominent trader says it won’t introduce new sell pressure on the market

Well-known Bitcoin investor “I am Nomad” stated that every major cryptocurrency exchange already sells a big percentage of their fees to cash through the market or with a long-term strategy.

The market may already be pricing in the conversion of fees to cash, reducing the likelihood of it causing a strain on the market.

The investor said:

Every major exchange sells a large percentage of fees to cash already (via their own market or long term tranche). I know this because I’ve been on the buy side of said deal. This is not introducing new sell pressure people should be scared of. It’s the same as it’s always been.

If cryptocurrency exchanges continuously convert their fees to cash on a regular basis, it is not likely to impose heavy pressure on the Bitcoin price trend after the halving.

By   JOSEPH YOUNG