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10 sats \ 1 reply \ @quark 28 Aug 2023 \ on: Inquiring about the halving bitcoin
It is a positive thing for holders of current bitcoins, because now there is less new bitcoins created each block. But for miners it is a bad thing. I was thinking about this. People will tell you, yeah. It price in dollars will increase so miners will be fine if they hold. Ok it is true, but on each halving, the price increase has been reduced. It is expected that this next halving will be the same. This, along with the fact that mining difficulty keeps increasing, doesn't look good for miners. At least for smaller miners. Which leads to centralisation of mining, which leads to something I don't really specially like much.
Thank you. This is part of what I was wondering about. If mining becomes less attractive, then more miners may drop off, eventually diminishing the security if the network. I hope the price goes up this time too. But, this is only good for people already holding. If the price does not go up enough to account for the decrease in reward amount, then miners have less incentive to keep mining. Especially smaller miners, like you were saying, which would lead to further centralization of mining, and centralization of control of the network. I know the halving is necessary, but I though this was a consequence that I havent heard mentioned. Thank you for posting this
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