bitcoin NEWS

Comes second so-called halving of bitcoin. This week, when three-quarters of all bitcoin have been mined, the reward for the block mined will be reduced from 25 bitcoins to 12.5 bitcoins. This is a key event in the history of bitcoin, which look all expect.

This event will affect miners bitcoin more than anyone: extraction of blocks is their business, and the reward for a block is a tidbit of their income. The conversation was with the chief operating officer BTCC, Mau Samson (Samson Mow), and CEO of BitFury, Valery Vavilov (Vavilov Valery). Last week learned how they are preparing for the upcoming halving.

And how to prepare for the halving Wu Jihan(Jihan Wu) AntPool, Genesis Mining, Marco Krohn (Marco Krohn), HaoBTC Erica Mu (Mu Eric) and Slush Pool Palatinus Marek (Marek Palatinus)?

Optimism

Like Mau from the BTCC and Vavilov from BitFury, all the miners talked about the upcoming approach of Polovinnaya with optimism. While halving the rewards interrupts their stream of income, the miners recognize that it is key to bitcoin value.

Wu — co-founder of the Chinese manufacturer Bitmain ASIC, which is also run by AntPool, the second largest mining pool in the world, with 20% of the total of Hasrat, said that he expects the increase in the price of bitcoin in the upcoming Polovinnaya.

"Monetary policy bitcoin is not perfect, but it delivers on its promises. To rely on promises is hard enough for monetary Bureau or the Central Bank," said Wu. "I think the halving will have quite a positive impact on price since the issue will be twice less than the previous one. Logical analysis does not necessarily lead to the conclusion of a doubling of the price, but I do see the actions of the market that have a positive impact on the price"
Mu, HaoBTC fully shares the optimism of Wu. He agreed that the limited supply of bitcoin is the main selling point of crypto currency and believe in its bright future.

Mu said

"The main characteristic that drew my attention to bitcoin, is the inflexibility of its money issue. The final issue and the scheme of dividing the block into two, once in four years, led me to the idea of lesser human influence on it, without a control group of elites, unlike most Fiat currencies in the modern world"
He added:

"I recently spent several weeks in Western China, mainly in Sichuan and Xinjiang. I felt a strong optimism based on the actions of others. I have never heard that someone got rid of cryptocurrency due to it coming Polovinnaya. Of course, I couldn't communicate with everyone in the industry, so can't rule out the possibility that I missed something"
Kron, chief financial officer and co-founder, Genesis Mining, also shared the General optimism, though he is more skeptical about the assumptions on further growth in the result of Polovinnaya awards.

"Given the constant demand for bitcoin and the fact that mining bitcoin is halved, the price has to go up," said Kron. "While the argument is correct, we neglect the fact that this event is known to each participant, so that the speculators will start buying bitcoin before the coming events Polovinnaya. Thus to predict the outcome becomes almost impossible. Similar price spikes we saw in late may
Risks

Although the feeling of the miners is positive, but we should not forget about the risks for Polovinnaya. Coinbase CEO Brian Armstrong (Brian Armstrong), along with the Bitcoin Core developers and other experts are concerned that halving rewards would make some miners to stop their hardware due to the lack of income.

This can, in turn, lead to lower levels of Hasrat that will lead to an increase in confirmation time. In addition, given the current network bandwidth, it can lead to network congestion. In the worst case a potential reduction could even lead to users selling their bitcoin, thereby reducing the price and income of the miners even more, which can lead to an increase in the number of shutdown equipment — a “death spiral”.

However, miners do not believe in such a scenario.

Crowns, Genesis Mining explained:

"We believe that any reduction in the level of Hasrat will be negligible — within 10% — 25 %. This is because the contract for electricity consumption are generally fixed for a longer period; if the term of the contract will not expire before the end of the month, the miners will not stop mining before. In addition, the Economics of mining podrazumevaet investing in equipment. Because people knew in advance about the halving, it is likely they have invested in equipment over the past half a year. Still a large amount of equipment was really added in the last seven to eight months. Even now there is a new equipment directly from the manufacturers and its development is not in place. A comparable event is the litecoin halving in August 2015, showing little impact on the level of Hasrat"
Crowns definitely drawn to the potential “deadly series” spiral of events:

"Common 'deadly argument' of the spiral is correct. The blocks can be filled due to the reduction of the level of Hasrat. But since our expectation is that this reduction is not too large, we believe that any congestion will be limited. This will certainly cause some irritation, but on the other hand, the majority of market participants know about it and don't merge their bitcoin for this very reason. Moreover, the adjustment of the situation will take place for two or three weeks later, after which everything will return to normal life"
Palatinus, the operator of the Slush Pool (which is about 5% of the total of Hasrat) not to worry about it. By joining with other miners, he referred to the significant increase in the exchange rate of bitcoin over the past year, which according to him is a sign of the future prosperity of mining.

"I fully agree that the halving does not entail any problems. I think any potential price increase is already reflected in the current exchange rate. But if mining was quite profitable for miners at the price of slightly above $ 200, which we saw less than a year ago, even at the current price it will be quite profitable even after Polovinnaya"
Mu HaoBTC agree with no cause for concern. In any case, he believes that Herat will continue to grow.

"During my travels in Western China, I saw the construction of several new mines. So, based on my personal experience, I doubt that Herat will fall significantly"