The Bitcoin Landscape Following the Halving

We launch our podcast series with Johnson Xu, Chief Analyst at TokenInsight. On today’s episode, we talk about the Bitcoin landscape following the halving.

Key Points

During this podcast we discuss important topics centered around the highly-anticipated Bitcoin halving. Stay tuned for TokenInsight’s upcoming post-halving report.

Market Sentiment

Timestamp: 2:26

We talk about market sentiment and price prior to and following the halving. As the Bitcoin halving hype cools down, Bitcoin’s price has begun to slide.

…dying down a bit in terms of sentiment, post-halving, so that’s what we see at the moment”

Johnson Xu

Bitcoin’s price has also slid following the halving, now trading around the $9,000 range.

Mining Landscape

Timestamp: 4:16

As the Bitcoin block reward halves from 12.5 BTC to 6.25 BTC, miner capitulation becomes a serious concern.

Johnson talks about transparency within the mining industry, or rather the lack thereof. We then continue to talk about the hashrate volatility during and after the halving. Johnson talks about the mining landscape in China focusing on electricity costs. He focuses on the “wet season” and “dry season”. During the “dry season” electricity prices stay relatively high as hydroelectric power is scant. However, during the “wet season” hydroelectric power allows for cheaper electricity rates and as a result, more miners on the network. Miners may also move mining equipment to regions where the “wet season” begins early to take advantage of the lower cost of electricity.

Johnson also mentions that once “wet season” beings, the Bitcoin network may actually see a hashrate jump.

… general sentiment towards the mining landscape in China is fairly optimistic…

Johnson Xu

Bitcoin Transaction Fees

Timestamp: 12:14

Mining revenue brings us to another topic following the Bitcoin halving: transaction fees. With transaction fees now surpassing $5 per transaction, transaction fees are becoming a greater part of miner revenue.

Johnson talks about how the hashrate reduction and the block time increase has led to a rapid surge in Bitcoin fees. Following the halving, the average block time has increased by 20%. However, transaction fees will decrease as difficulty adjusts, given that network activity stays constant. That being said, Johnson believes that once “the block time has been adjusted to 10 minutes per block, then the average transaction fees per byte will revert to normal.”

Bitcoin Network Health

Timestamp: 21:33

Bitcoin is the largest and most established POW cryptocurrency. In a POW network, an increase in hashrate translates in an increase in network security as the likelihood of a 51% attack becomes unlikely.

Johnson classifies Bitcoin network health through three metrics: efficiency, hashrate growth, and decentralization.

This podcast is for informational and entertainment purposes only.

Send feedback or podcast requests to [email protected]

Content displayed on is not investment advice. Investors should do their own research before investing in digital assets or anything displayed on this site. The Crypto Associate does not recommend trading any sort of investment in cryptocurrencies and digital assets. The Crypto Associate is not responsible for any losses incurred due to the buying or selling of cryptocurrencies displayed on this site. All content is for informational purposes only. The Crypto Associate does not endorse, affiliate or repersent any third party links including advertisements. Read the full disclaimer

Source link