The Bitcoin mining sector has grown into a million dollar industry, but if the rewards are going to be made half, how it will impact the miners across the globe, and will this have an effect on the network security, this is the central idea of this blog post.
Bitcoin mining over the last decade has been the bread and butter for many people around the globe and an additional source of income stream for the tech-savvy individuals those who make their living via the Internet. Now, the Bitcoin is taking the bold step of reducing the mining rewards to half in the month of May this year, will that mean a dead-end for agencies those who have in the bitcoin mining industry?
A large segment of people related to the crypto world firmly believe that this is an utterly bullish step and see it catapult for the price of Bitcoin in the near future. Now, what effect this is going to have on the minds of the miners?
Coin Rivet did a quick market survey to put forth the holistic overview of this decision via the opinions of the industry experts.
Before we go any further it is imperative to know what is Bitcoin halving? A quick recap, Satoshi Nakamoto, the mysterious creator of the world’s first digital currency programmed the network in a manner the rewards for the miners will be halved with each passing four years.
With the launch of the Bitcoin, the mining reward was tremendous, and inviting for anyone to take bitcoin mining as a profession- it was 50 BTC for one block, then in 2012, it was halved to 25 BTC, 12.5 BTC is the present reward, and this will be again be halved in 2020. Then, in 2024, and so on.
The theme of this digital currency is that the miners are solely responsible for releasing new Bitcoins in the market, so rewards play a big role. But as per the chief of learnbonds.com, editor Edith Muthoni, “As block rewards continue to diminish, so do miners’ rewards.”
She continues: “This brings us into a seeming conundrum: if miners will no longer receive block rewards (or too little), will they continue mining? What will be their motivation to stay on? What does this mean for the network and Bitcoin?”