“The threat of centralization with the upcoming Bitcoin halving”
Bitcoin Halving and Centralization of Mining Power
Bitfinex has issued a warning about the potential centralization of mining power during the upcoming fourth Bitcoin halving, scheduled for around April 20th. There are concerns that this adjustment may increase financial pressure on small miners, which could result in unfavorable consequences for the decentralization of the cryptocurrency.
Threats to Smaller Miners
According to a report published by Bitfinex, the upcoming halving event may force smaller miners to exit the market. The expected dominance of publicly traded mining firms could lead to the centralization of mining power, contradicting Bitcoin’s well-known ethos.
Risk of Centralization
The risk of centralization of mining power could lead to potential transaction censorship and increased vulnerability to attacks or regulatory pressure. Companies like Bitfinex emphasize that such a situation is not in line with the original intentions of cryptocurrencies.
“The cryptocurrency market is currently facing a challenge, so it is necessary to monitor the impact of the upcoming halving on its structure and further development.” – comments a financial analytics expert.
Diverging Views on the Effects of Halving
There are differing opinions on the impact of the fourth Bitcoin halving on the market. The cryptocurrency exchange Coinbase suggests that the current halving may bring completely different effects than previous ones. New dynamic actions of Bitcoin Exchange-Traded Funds (ETFs) listed on exchanges could affect the supply and demand balance of this cryptocurrency.
Price Forecasts and Development Perspectives
Currently, Bitcoin (BTC) is trading around $68,000, although there has been a slight decline compared to record values. Nevertheless, representatives of the cryptocurrency industry agree on the continuation of growth. It is expected that the price of Bitcoin could exceed $80,000 by the end of the current year, providing optimistic prospects for investors.
