Blockchain Bites: What the Bitcoin Halving Means for Miners and Prices
By: Hashbx Global
Tags: Cryptocurrency News, Bitcoin Wallet, Bitcoin Mining, Bitcoin News, Cryptocurrency Investment

Predictions and price models proliferate ahead of Bitcoin’s programmatic halving, expected in less than two weeks.

While some are turning to esoteric economic models to make the claim that the occasion will be bullish for the largest cryptocurrency by market cap, others believe it’ll be a non-event. Still, the halving is already showing real-world effects, with major mining manufacturers slashing prices and small-time investors… investing. (To be fair, these trends could also be attributed to COVID-19-led market distortions.)

Halving Predictions: Mining & Price

Hut 8, one of the largest publicly listed mining companies, is likely to be affected by the incoming bitcoin halving event. The firm’s profitability has declined over several quarters, its mining rigs are struggling to compete and it carries a heavy load of fixed interest debt. CoinDesk Research takes an in-depth look into Hut 8’s financials and risks in a free report, available for download here.

Meanwhile, mining manufacturer Bitmain is said to have booked over $300 million in revenue for the year to date. (The Block) Still, the firm has already begun marking down the prices of its machines ahead of the halving event.

Bitcoin’s third halving, less than two weeks away, is often touted as a catalyst for a price surge. It’s certainly led to a surge in interest and speculation around the cryptocurrency. Yet, some traders think the halving will be negligible compared with other macro-level events like unprecedented central bank monetary policies as well as the everyday trading levels on exchanges.

However, believers in Bitcoin’s stock-to-flow model are predicting a bullish run after the halving. This esoteric economic model tracks a commodity’s existing supply against how quickly new stock enters the market. “This hypothesis … is that scarcity, as measured by S2F, directly drives value,” PlanB reportedly said. Decrypt’s Colin Harper takes a look at the theory.

Forbes also weighs in on the debate, with contributor Luke Fitzpatrick predicting “a new class of crypto millionaires may emerge.” (Forbes)

Messagin’ Mnuchin

In a letter addressed to Treasury Secretary Steven Mnuchin, 11 members of Congress, suggest blockchain and other distributed technologies could boost liquidity and help distribute federal stimuli during the COVID-19 crisis. “Such steps will ensure both that America retains its technological advantage and that relief is delivered quickly to the small businesses and individuals who need it most,” the letter reads.

Silver Linings?

Silvergate Bank added 46 crypto customers in the first quarter and saw fee income and deposits increase from its existing client base. COVID-19-led market volatility is cited by the bank as cause for an increase in deposits, according to the company’s earnings report.

Nasdaq Taps Corda

The Nasdaq stock exchange has partnered with R3 to offer a platform for digital asset marketplaces on the Corda blockchain. As of today, capital markets participants can use Corda to support the issuance, trading, settlement and custody of digital assets.

Credit : https://www.coindesk.com/blockchain-bites-what-the-bitcoin-halving-means-for-miners-and-prices

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