Bitcoin miners are facing smaller rewards now that anti-inflation safeguards have been triggered. The cryptocurrency has been programmed to halve the amount of Bitcoin paid out every four years; which has passed for the second time since it was created in 2008.
The previous rate of 25 Bitcoins available every 10 minutes has now been halved to 12.5. A situation that has professional mining operations facing the prospect of reduced revenue and potential bankruptcy; leaving only those with the leanest of operations left to compete.
Mining Bitcoin is an energy intensive operation, especially when done on the large scale. The problem is keeping all the computers powered and cooled; which tends to end up costing more than the Bitcoin itself. An issue that also affects individuals who do a little Bitcoin mining of their own on the side.
At the moment, the conversion rate of Bitcoin stands at about RM2600 per 1 BTC. The global exchange rate dropped by about 5-percent after the halving; but looks to have stabilised faster than anyone expected.
Bitcoin news has slowed somewhat over the last couple of years. The cryptocurrency has left behind the massive value swings that signaled its entry into the mainstream consciousness and is less volatile than it used to be. How the halving of the drop rate will affect the exchange rate has not yet been seen, although in theory this should drive overall prices up.
[Source: Reuters]
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