In May of this year, an important event will occur in the cryptocurrency market, according to Peter C. Earl. Bitcoin, created by Satoshi Nakamoto, will drop its mining reward to half value. This happens every four years, once 210 000 blocks have been mined. Earl believes that this halving indicates a significant move.
The reward will drop from 12,5 BTC to 6,25 BTC. Yearly inflation is approximately 3,7% or 177 blocks on average per day. This crypto inflation indicates a rise in the number of Bitcoins. According to Earl, current crypto inflation is rising more steeply than the rising price change of goods. After halving, the price of Bitcoin will be more valuable than the US dollar, according to the consumer price index.
This growth can make Bitcoin even more attractive than it is now. The slower inflation of cryptocurrency (in comparison to the real inflation of fiat currency and goods) can strengthen the value of Bitcoin and its ability to maintain this value. Bitcoin will also be more competitive with most world currencies. But it also depends on the volatility of Bitcoin.
If a currency has algorithmic limitations of emission, it is another form of quantitative tightening. This goes against quantitative easing used by most of the central banks, which is potentially dangerous.
Also, the Bitcoin market and transfers are more transparent and have more liquidity than a couple of years ago. It looks for now as though the cards are with Satoshi Nakamoto’s Bitcoin, thanks to the politics of central banks.
Two Chinese companies are struggling to deliver the best bitcoin mining hardware to the cryptocurrency market. The final date for the miners is 12 May. Then, the rewards for the world’s most widely used cryptocurrency will be halved. Ownership of the most advanced mining rigs (computer with graphics cards) will decide whether mining will pay off economically.
Beijing’s Bitmain company introduced the new AntMiner S19 and S19 Pro, which have a transaction confirmation rate of 110 terahashes per second (TH/s). The energy performance indicates 29.5 watts per terahash (W/T).
Coindesk claims that these machines should be the most valuable bitcoin mining equipment on the market today. The problem, however, is their availability for those interested. Taiwan Semiconductor Manufacturing Company (TSMC) manufactured the chips for the Bitmain S19.
The second most powerful machine is the WhatsMiner M30S from MicroBT from Shenzhen, China. Hashrate has 86 TH/s, and power consumption is 38 W/T. It will not be available until March 20. Samsung, the South Korean company, will supply chips for the device.
An in-depth look at halving right here: https://blockgeeks.com/guides/bitcoin-halving/