Bitfinex has warned of possible centralization of mining capacity amid concerns over the upcoming Bitcoin halving, which could increase financial pressure on small-scale miners.
Bitcoin's fourth halving, scheduled for around April 20th, could force small-scale miners to exit the market, with remaining mining operations potentially only accessible to publicly traded miners. is high.
According to a recent report from Bitfinex, the upcoming halving event could force small-scale miners to exit the market altogether, leaving the space dominated by publicly traded mining companies. Bitfinex warns that this concentration of mining power is “contrary to the principles of Bitcoin.”
“The risks of centralization could mean possible censorship of transactions and increased vulnerability to coordinated attacks and regulatory pressure.”
bitfinex
However, Bitfinex also claims that the halving could have positive consequences for Bitcoin's price, citing a slowdown in the creation of new coins that would exacerbate the supply shortage.
“If the price of Bitcoin rises enough, it could offset the decline in block rewards and maintain or even increase the profitability of mining. This price increase could support continued investment and mining activity. It’s really important to encourage participation.”
bitfinex
Nevertheless, there is uncertainty as to whether the fourth half-life will follow the pattern seen so far. Cryptocurrency exchange Coinbase, for example, claimed in a recent research report that everything could be different this time, and that changes in market dynamics have established a new demand anchor for BTC Bitcoin exchange-traded investment. I think they are paying attention to trusts (ETFs).
“We believe the current price movement is just the beginning of a long-term bull market, and further price increases will be needed to rebalance supply and demand.”
coinbase
At the time of writing, Bitcoin (BTC) is trading at $68,000, according to data from CoinMarketCap. Although it has retreated slightly from all-time highs, industry executives remain united in expecting Bitcoin to continue its rise, with forecasts for the rest of the year well above $80,000.
