BTC halving could cause market manipulation – Miners can artificially inflate the price!
2 min readWhat impact will BTC halving really have on the price? First of all, it is important to mention that the reward for one extracted block will be halved from minute to minute. As a result, fewer new BTCs will be in circulation and miners will lose much of their profits. There are several scenarios to expect.
The price of BTC will start to rise immediately
One possibility is the growth of BTC by several tens of percent. For BTC mining to be profitable for most miners, one coin will need to be traded for at least $ 12,000. Otherwise, there will be losses. The result can be an end for several mining companies or private “domestic” miners. If this happens, the hashrate will fall. So who remains, for them will increase the reward. The critical threshold for profitability could therefore fall.
Clearing the market from inflated bubbles
If the price does not rise for a long time and eventually trade below $ 12,000 by the end of the year, it could be the end for a large number of miners. Due to losses, they either go bankrupt or shut down their mining equipment for a long time. If they have a few months outage, it is quite possible that, in disappointment, they do not have to return to mining or sell their equipment to others, especially beginners.
If this scenario occurred, the entire mining world would be cleared from the inflated bubble incurred primarily during the year 2017, when everyone wanted to earn as much as can. To the mining market, thus leaving only the real experts, who have a strategy for profitable extraction even during difficult times.
Beware of market manipulation and BTC halving
Market manipulation may be a highly probable post-emergence scenario. As long as the price remains very low, miners can start manipulating the market through their mined coins. There could be a lot of strange movements, when one day the market would make, for example, a 10% profit and then after an hour it lost 15% again. This would be repeated over and over again.
There would be indecision on the market between miners, speculators, traders and BTC whales. This scenario seems to be quite probable, as we have already experienced something similar during the last two halvings in 2012 and 2016.
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