Post
Topic
Board Bitcoin Discussion
Re: HALVING IS GOING TO CAUSE A GENERAL EFFECT ON ALL IN THE ECOSYSTEM.
by
DoublerHunter
on 06/09/2023, 10:08:04 UTC
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.
^ Technically, it's quite hard to understand those aspects when it comes to miners because I am not a miner but from what I have understood, it could be miners experience a direct reduction in their income after a halving event because they receive half the number of new BTCs they used to for every block mined. This can be particularly challenging for miners who operate with slim profit margins, as their revenue is effectively cut in half. However, probably this how BTC was created and it is designed to control its supply and create scarcity. The long-term effects of halvings are often seen as positive for the overall BTC ecosystem or in the crypto world. So the effect would be good for us as crypto enthusiasts.