Bitcoin’s Halving is only a few days away. For this reason, we continue to ask ourselves the questions of the past few months, but with more emphasis. Will there be a significant increase? Will we be able to make huge profits? For this reason, we will review the BitMEX research studies.
Many of us look for expected answers to what’s going to happen and examine events that have already occurred in the previous two Bitcoin halving events.
Although we can have an idea of what it could be, each halving has its peculiarities. In addition, neither of the above two events occurred in a situation that the world is currently experiencing with COVID-19.
What do we know so far and what does halving mean for BitMEX users?
BitMEX Research recently released a comprehensive halving report, highlighting that the most critical impact would be on miners.
In particular, BitMEX Research emphasized mining incentives and the likely impact that halving them would have.
The study concludes by finding that halving could result in a 30% to 35% drop in network hash rate, provided Bitcoin’s price doesn’t change significantly.
They also estimated that such a reduction in the hashrate would result in a temporary increase in transaction confirmation times for both deposits and withdrawals.
However, the investigation also found that these waiting times should decrease to an average of 10 minutes per confirmation within a few weeks of halving Bitcoin.
They then reiterated that the BitMEX wallet system is designed to dynamically set the minimum Bitcoin network fee based on the blockchain load. In addition, a fee is paid for a user’s payout transaction to ensure that it is confirmed within a reasonable time.
Given the likely fall in the hash rate after Bitcoin’s Halving, at least for the first few weeks, users may experience delays in transaction times and a subsequent increase in network fees for withdrawals.
So if you have one of these experiences, you already know why and that you don’t have to worry much. As for the consequences per pIn the market, you should keep up to date with our coverage of the event.