Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
There are currently a number of factors that determines what positivity will trail the future of Bitcoin.
More than ever, the number of computers plugged into the Bitcoin (BTC) network is higher than ever, automatically leading to a rise in the network’s total hash rate and a halving date slash. As of September 11, the Total Hashrate of the Bitcoin network hit 281.79 million TH/s, a metric that generally showcases strong network health.
With more computers plugging into the Bitcoin network, the level of decentralization is all the more increased. This enhanced decentralized makes transactions more secure as the chances that the network can be taken over by exploiters through the 51% attack is becoming almost impossible.
The increasing hashrate of the Bitcoin protocol may take its precedence from the Ethereum (ETH) network also as the latter is on track to make Proof-of-Work (PoW) mining obsolete with The Merge event slated for this week. Chances are high that the miners from Ethereum are gradually shifting their focus to Bitcoin before being caught up by the difficulty bomb that will naturally make mining Ethereum impracticable.
In addition to the visible benefits of this growing Bitcoin hashrate to the broader network, it is also set to shorten the expected date for the next halving.
Bitcoin halving is a historic event that takes place after 210,000 blocks have been mined. This mining target typically takes place after every 4 years, but the cycle as of this moment is bound to be changed. Per the current hashrate level, the next halving has now been projected for December 2023, about 5 months earlier than May 2024 when the next halving is expected.
With May 2020 being the last time the halving event took place, a change in the structure will become more imminent should new miners or computing resources be plugged into the network some more.
Bitcoin Halving and the Fight for Relevance
There are currently a number of factors that determines what positivity will trail the future of Bitcoin. While this halving is one, as the phenomenon contributes to its deflationary features in ways that entice investors, its massive energy use has remained a major bottleneck that will now put it in close competition with Ethereum post-merge.
Besides their individual histories, Ethereum is billed to be 99% more energy efficient than how it was when using the PoW consensus model that Bitcoin is still using. With its upgrade, Ethereum is bound to be more favored by investors as it will now fit in better with the ESG pursuits.
The energy consumption of both networks has always been a major concern, however, the basis for comparison was not pronounced all these years. With Ethereum shifting gear, regulators may be more strict with their scrutiny of Bitcoin and the fight for relevance for the premier digital currency will likely take a new turn by then.
Prior to when regulations will be heightened, Bitcoiners will now set their gazes on the next halving as Ethereum investors have been looking up to the transition to PoS for some time now.