How will the BTC mining difficulty level affect validators (btc miners) due to 1/2 reduction in reward after the next halving and possible backlash on general ecosystem?
Please as simple as you can I'd love to get your explanation on this.
Bitcoin halving needs months to have effects on price because halving is only an event that has noise to help Bitcoin reaching to more people with halving noise effects. Very general, Bitcoin halving event will help Bitcoin expands its communities, bigger.
For Bitcoin miners, if they are short term miners who don't plan to hold their bitcoins a long time, but only mine and sell bitcoins after each week or month, they can feel shocks from halving. Fortunately after a few Bitcoin difficulty retargets, they will feel better with block rewards and if price rises because of halving, their mining ROI won't be affected too much.
If they are long term miners, with holding plans, they will feel very little pressure from Bitcoin halving.