2024-04-20 01:49:00
Amidst the Bitcoin Halving event that is set to change the face of the mining industry. This can lead to centralization. Jag Kooner, head of derivatives at Bitfinex, believes that making it harder for miners to make a profit could force smaller miners out of the competition. All that remains are the larger companies with more capital.
However, Kooner said the changes also present an opportunity to improve innovation and efficiency within the industry. Miners can explore new regions with cheaper energy sources. or invest in more efficient mining technology to maintain profits.
Additionally, miners can invest in developing more profitable tools. And you can use your resources to improve your mining rig even further.
The downside is that transaction fees may increase if block mining rewards decrease. Miners will increasingly rely on transaction fees as a source of income. Higher fees may also reduce the appeal of small Bitcoin transactions.
The negative consequences of miners exiting the market are network security. Kooner said that “a significant and sustained decline in hash rates could undermine confidence in the security of the Bitcoin network, which could potentially affect the price and rate of market adoption.” piece of money.”
But in the short term Bitcoin’s price surge has been driven by a decline in the speed at which new coins are created. This can compensate for the reduction in block mining rewards. As a result, miners continue to want to secure the network.
Source: CryptoBriefing
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