The co-founder and CEO of F2Pool, Mao Shixing, said that Bitcoin’s next halving will have ‘litle impact’ on the market. He gave these comments talking with the Chinese news outlet Jinse finance last week. F2Pool is the world’s sixth largest crypto mining pool.
Mao Shixing Says Bitcoin Halving Will Have Little Impact
During a conversation with Jinse finance, Mao Shixing said that the next halving on the Bitcoin network will not have a huge impact on the crypto world. This halving is expected to take place in 2020. He explained that as we already get prepared for it, the event is going to have little impact on the ecosystem.
About it, he said:
“We mentally prepare ourselves for Bitcoin’s next halving, so the event is expected to have little impact on the Bitcoin ecosystem. In addition, the nanometer-size chips used to mine cryptocurrencies will increase the lifecycle of mining rigs and the investment model of the mining machine will be different then.”
Bitcoin’s inflation rate will be reduced in 2020. This is a process that takes place every four years and is expected to happen until all BTC are mined. The next halving will reduce block rewards from 12.5 BTC to 6.25 BTC.
Some experts believe that due to this situation, the price of the virtual currency would increase. There will be more resources needed to maintain the network but less BTC available for miners. At the same time, there will be less BTC for a higher number of investors.
Moreover, he seemed very cautious about the future of the space. Shixing did not want to predict where Bitcoin’s price was going to be in the future. He then said that miners could turn an adverse situation into an opportunity.
Shixing explained that there was a very notorious interest at the end of the last year to start mining virtual currencies. However, the market has been falling since the beginning of the year. Mining operations are not profitable anymore for several miners.
At the time of writing, F2Pool and other mining pools could be operating with big losses. The virtual currency market needs to grow again if miners want to have some profit.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.