Apr 18, 2024

Blockspace Media co-founder William Foxley helps answer questions from CoinDesk viewers on the upcoming bitcoin halving, including its impact on BTC price, whether there will be a hash rate increase, and what happens when all the halving events take place.

Video transcript

The Bitcoin having is days away and Will Foxley from the mining pod is joining me to answer some of your social media questions. Will thank you so much for doing this for us. Of course, a podcast with a podcast or let's hit these topics podcast with the podcast. It's a podcast section. All right. First question. Thoughts on JP Morgan's stance that the having is priced in. I think so. I mean, I think we look at like the history of Bitcoin happenings, they've typically, uh led to an increase in price about 6 to 9 months after the Bitcoin happening. Like Bitcoin price has gone up. But that doesn't mean that like the happening is the cause of that. I do think like we're going to see a dramatic drop in the amount of Bitcoin produced all those sort of things and that's going to be good for uh supply and flows to like different ETF S or buyers. I think generally, like we've known the happening schedule for quite a while. People have been like preparing for it for quite a bit. So I can't really say that it has not been priced in, it feels like it's people have known about it, you know. Yeah, I feel like that's the the general sentiment. All right, let's move on to the second question from our social media channels. Will the hash rate decrease after the having? And if so how much? Definitely when it decrease a little bit, I'd say about 10%. We'll see if that number is right or not. I think a lot of people are mining into the happening trying to reduce those rewards. People are probably even turning on older machines. But once that happening happens, you'll see a lot of older machines, machines that aren't as efficient turn off until price comes back up. Uh Or even people who have bad electrical contracts and aren't able to pay or mine profitably will turn off. I do think though that with Bitcoin price being so high and probably more of like a bullish year that we'll see a lot of this hash rate turn back on and probably the lowest amount of hash will turn off in terms of Bitcoin happenings historically. Third question. Now, do you think this year's having will have the biggest impact since institutions are now trading Bitcoin? I think compared to previous happenings probably. And if you go back to the 2021 there wasn't like a ton of eyes on Bitcoin at the time, Bitcoin was trading around 6 to $7000 at the moment. Uh COVID had just started and so a lot of people are focused on that. There wasn't too much tension and the previous ones are almost ancient history to most Bitcoins and people weren't really around in 2016 or 2012. So those were sort of like, certainly large events for Bitcoins, but not in terms of uh other market participants. Now with ETF is going live and all these ETF S like eating up Bitcoin every day, less Bitcoin in the market from these miners certainly means that there's going to be like more price pressure because there's less supply. So I think over time, we'll look at this as more of a uh one of the most important moments for Bitcoin, maybe like the last 90 to 100 80 days. ETF is going live to Bitcoin having being pretty important in Bitcoin's price history. OK. And this is the last one and it's a long one. What happens when all the having happens? I think they mean when all the having happen, uh Bitcoin relies on transaction fees for security. I know it's a ways away but it's also not that far away in the grand scheme of things, only some generations. So I guess the question there is what happens when the having happen, all of them. Yeah, I mean, you're making me pull out my Bitcoin uh history book and remember what, what it says in there. I think for the most part happenings will just keep happening until they stop completely, I think the year 2140 is when we see like the end of the block subsidy uh happening just keeps going down until like there's not any more Bitcoin to issue. And then we do move to a security budget based completely on transaction fees. So while that is 100 plus years away, in terms of like a currency history, that's not that far away. I think a lot of people are concerned about that. Uh I know from talking from Bitcoin miner who are staking, you know, their entire businesses on this road map working, they're really pushing transaction fees through different mediums, whether that be L twos, different multi six schemes, different applications on top of Bitcoin to be able to uh prevent anything from happening to uh Bitcoin in the near future. So I think miners for the most part are bullish different applications on Bitcoin in order to prevent the happenings from whittling whittling away their revenue.

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