A few months ago when a row erupted between two camps about the BCH hard fork, the Bitcoin market was so affected that some miners pulled out of the business. Overall, the economics surrounding cryptocurrencies is by itself a difficult topic that often creates catalytic debates that end up unearthing other underlying issues like transaction fees and the talk of just how much the coin should be worth in minimal in order for miners to make a buck.
The latest opinion comes from a popular crypto researcher known as Filb Filb. According to Filb, the current Bitcoin value doesn’t quite favor the miners, especially considering the costs of operations incurred on their end. In a twitter post, Flib sought to bring to light the economics surrounding the crypto mining business.
Bitcoin Halvening Next May
Explaining his point, Flib pointed out that the mining fees are about 1% and the remaining 99% is basically is the revenue from the total income raked in. However, this income decreases when halvening occurs and also when network scalability systems like the Lightning Network come in. In fact, according to Flib, Bitcoin mining fees would have to increase by x46 to maintain the miner’s income after the next halvening expected in May 2020.
To avoid that, Bitcoin’s price will need to shoot up to around $7,000 by May 2020. That’s just about double the current Bitcoin price. According to another Analyst going by the name Moon Overlord, Bitcoin’s price tends to start catching up about a year before the halvening occurs. With that, the analyst projects that Bitcoin’s price surge could begin as early as this May since the halvening is scheduled for May next year (2020).