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BTC miners are on the rise despite halving's approach

BTC Miners - BTC miners are on the rise despite halving approaching

THEhalving of Bitcoin, or the halving of the compensation due to miners, is approaching, prompting public opinion to ask what could happen after the event. A completely legitimate question in light of a time when BTC continues to give rise to significant fluctuations which however confirm its vitality and increasingly central role.
A fact that has been underlined in recent times, and which nevertheless raises some surprise, is that relating to the fact that despite the level of rewards is about to halve (from 12,5 to 6,25), the number of those who intend to participate in the extraction of the blocks necessary for the tokens is increasing. It actually seems a contradiction, but it is a fact.

The Fortune article

To highlight this apparent contradiction was the magazine Fortune, who published an article entitled "Despite 'crypto winter, 'new Bitcoin mines continue to open ", on the topic.
In the context of this article, the opening of a new one is mentioned mining farm created thanks to the support of Peter Thiel, a very important figure in online finance. It is in fact the co-founder of PayPal and the first Facebook investor, who acted in this case by leveraging the startup layer1, of which he is one of the financiers. Just in the past few hours the company announced the opening of its first BTC mining facility, in a plot of land of over 30 acres, whose initial cost stood at several tens of millions of dollars. The plant is located in a strategic point, or west of Midland. It is a Texan area which, according to the evaluations of Alexander Liegl, CEO of Layer1, would enjoy a price of electricity which, if projected on a large scale, would be the most affordable, globally.

Not just Layer1: what is happening?

In addition to Layer1, however, there are other companies that are investing heavily in the Bitcoin mining. In the number they should be mentioned for example Hut 8, Bitmain and Bitfarms, companies that have taken steps to expand existing structures or have built new ones.
Just this rush to an activity that with thehalving would see its convenience reduced prompted Fortune, and beyond, to ask a specific question: why is what is happening that at first glance seems like a real contradiction? The answer is provided by the magazine itself.

The convenience lies in the evaluation of BTC

According to Fortune, if it is true that with halving the reward for miners will be halved, this growth will be compensated for by the growth of the Bitcoin listing, which could be impetuous already in the months following the event. If it seems an exaggeration as much vaticinato from John McAfee, according to which by the end of 2020 the queen of cryptocurrency it will be worth one million dollars, however, it does not seem far from reality that without indicating limits hypothesizes an increase in its price to levels that make mining extremely profitable even after halving.
To make these prophecies plausible are some facts of not secondary importance, starting from the fact that BTC is now seen as a safe haven asset, so much so as to give rise to spectacular advances in correspondence with every geopolitical crisis or events capable of reflecting on the economy. Just think for example of what happened following the crisis between the US and Iran or in conjunction with the spread of coronavirus.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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