The goal of mining is to add blocks to the blockchain and it functions by allocating computational power of user’s equipment in order to solve a cryptographic problem. The last one is complicated to solve, but when the solution is found, it is easy for the network to confirm the correctness of the solution. Multiple valid solutions are possible for any given block, and only one solution is necessary to get to solve the block. Solved the block? It is time to get a reward – new Bitcoins.
At the very beginning of Bitcoin’s existence, it used to be quite simple to get some extra income with the help of your personal computer. The situation was changing with time and the growth of miners involved. Nowadays mining covers numerous complicated devices consuming a huge volume of electricity. Well-funded organizations are investing in Bitcoin mining to ge priority over their competitors in the digital battle. In addition, the development of miners does not let users wait that long. Many miners cut the usage of older mining machines and buy new more powerful equipment; moreover, the third halving is getting closer bringing optimistic expectations to Bitcoin followers.
At the same time, a part of miners keeps using old machines. Bitcoin’s price is quite high now and even operating with older models makes profitable results. When Bitcoin’s price reduces, secondhand mining equipment is becoming more profitable to run. In any case, users continue mining steadily increasing the hash rate. This tendency will keep running until there is an external crucial change; it might be price activity in other cryptocurrencies, or negative news over Bitcoin. Although the possibility of the last two is not that much high, Bitcoin’s price may reduce for some period of time. However, Bitcoin mining is accepted by most as a long-term investment. Periodical fluctuations do not influence the whole picture and whales know it for sure.
What are enthusiastic miners looking forward to? They are looking for a revolution in the mining industry, which will definitely be done with the help of new mining equipment. Bitcoin’s price rises and more and more companies are starting to manufacture Bitcoin’s hardware. In the future, it might increase the supply and lower miner prices. Nevertheless, mining is profitable and will be profitable in the nearest future.
Crypto followers are now discussing all the possible scenarios with Bitcoin’s price after the third halving. Analyzing two previous halvings in 2014 and 2016 one can’t be sure that they are comparable with 2020. However, the tendency for price increase did take place in those two cases. There is an assumption that just after the halving the price goes down, but it is not the case of extreme volatility. Bitcoin is not going to lose its value. Remembering that the leader of digital money is first of all a long-term investment, investors are to have patience in order to gain the desired financial point.
Bitcoin’s opponents announce that Bitcoin is a bubble which is about to blow up. People may foresee various futures for digital money, but they can’t stop Bitcoin. This is a remarkable cryptographic achievement that is second to none. It has enormous value. If Bitcoin could be stopped, it already would be stopped. Since 2009 the world population has been watching its history of success. The success of the currency number one. The currency whose value depends on trust. The currency that gives freedom and has no restrictions. If there is so much fuss about Bitcoins, if there are so many manufacturers working on the improvement of mining equipment, if there are so many Bitcoin millionaires, could one be stopped? By whom and what for?