BTC has entered the era of low inflation, it is a good time to hoard Computing Power after Bitcoin’s Halving
Since February this year, the world has been affected by the epidemic, resulting in the black swan effect, and the world’s assets have fallen to varied degrees. However, after the epidemic, BTC has taken the lead in the global asset market, demonstrating its strong vitality. BTC is in its 12th year now and it is no exaggeration to say that there is no any other assets in the world that is able to recover quickly after losing nearly half its value in a short period of time, except BTC.
On May 12th 2020, BTC carried out the third halving, and the bonus of mining block was reduced from 12.5btc to 6.25btc. This historic moment has received unprecedented attention. Some people are worried, some are confused, but some are firmly convinced. But the reality is that, compared with the previous two times of halving of BTC, the market did not react much in the process of halving this time. So what’s the reason? In fact, because the number of bitcoin in circulation has exceeded 18 million, the amount of BTC that can be mined is relatively small, and the impact of production on the price of Bitcoin is not great. Therefore, the symbolic significance of halving is greater than the practical significance.
Now the halving has been completed, with the arrival of the flood season, the continuous influence of halving of BTC and the changeable and complex external environment, how does RRMine view the BTC market after halving? What challenges and opportunities will the miners face? Everyone knows that BTC’s new bull market is definitely coming, but no one knows when. After the halving, the mining industry can be described as “It is the worst of times, and it is the best of times also”.
After halving, the real inflation rate of BTC is less than 2%, lower than that of most fiat money. From the point of view of inflation rate and BTC circulation ratio, the halving in the future will have less and less impact on the whole cryptocurrency market. This also means that the BTC almost ushered in the era of full circulation and low inflation. At present, the news that institutional big customers increase their BTC holdings has been gradually verified by the market. China’s mining policies and environment are also improving, eliminating mining enterprises that fail to meet the standards and guiding mines to use waste hydropower resources. With good policies, the market tends to be stable and BTC market is facing new growth opportunities.
Bitcoin Hashing rate & Price Chart ( The First/Second/Third time of Halving)
The black curve represents BTC
The orange curve represents Hashing rate
The highest decrease of BTC hashing rate (computing power) in one month after the first two times of halving was -38.67% in 2012, -21.33% in 2016, and -17.64% in 2020. The above data show that it will eliminate a group of miners after each time of Bitcoin’s halving, and every time when the difficulty of Computing Power is reduced, it is the time to hoard Computing Power. Although the first two times of halving brought historic highs and exponential price increases, and led to the great bull market, it is easier to buy the token than to hold it. The holding period in the secondary market is short, so investors can only be traders and cannot wait for the bull market to start. Ten years ago, 10,000 bitcoin bought two pizzas, although it made history, it also taught us a lesson. How to hold BTC is the problem we should consider in the next 10 years.
Some of these discussions were also made in the recent online conference organized by TerraCrypto on May, 19th 2020. The CEO of RRMine, Steve Tsou has made a profound speech. He stated that ascending the dimensions of your computing power platform will help you hoard more power to cope with Bitcoin’s Halving. As a result, it enables you earn more and hold the coins for a long time.
A spiraling market is best for miners, and with low inflation, the time has come for a new round of hoarding for computing power. After halving in 2020, it is a huge challenge for the whole mining industry. It will be difficult to support mining in the mine with disordered management. The mine will develop towards IDC room and become more transparent and standard. Based on the development trend of mine refinement, the computing power which can be divided is undoubtedly the best choice for small and medium miners.