Journalist
Posted:
- Hong Kong lawmakers have become interested in Bitcoin lately.
- The halving of the king coin in 2024 poses a threat to miners.
The recent price increase for Bitcoin [BTC] inspired optimism among several traders and investors. However, the optimism wasn’t just limited to individual traders. Hong Kong lawmakers have also been seen actively pushing for BTC.
Bitcoin for progress
A Hong Kong lawmaker recently proposed letting people buy Bitcoin for the city’s immigration program. Hong Kong restarted this program after eight years. The immigration program usually charges about $3.84. But now people can use Bitcoin for their investments.
This program could be good for Bitcoin as it signals growing interest. However, there was one glaring problem. It is striking that BTC is known to be very volatile. This can cause investors to lose their starting capital.
So governments need to ensure that people understand the risks when it comes to using Bitcoin for this purpose. Overall, if more countries adopt Hong Kong’s stance on crypto, it will be good for the king coin in the long run.
Some concerns
Regardless of the above news, Bitcoin’s growth remained on the verge of slowing down. This was mainly due to miners, who are likely to feel the impact of the halving in 2024.
Bitcoin’s halving could affect miners in several ways. When this happens, miners’ reward for confirming transactions is cut in half. This can make it harder for miners to make money. They need more powerful computers to compete.
If the price of Bitcoin does not rise after the halving, some miners may quit because they are not making enough money.
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Halving can also make it harder for new miners to start. It’s a competitive world and it’s difficult if you don’t have the latest equipment. Some miners may have to sell some of their Bitcoin to cover costs, but if the price is low they lose money.
But for now, miners had nothing to worry about as their earnings at the time of writing were over $44 million.
Source: Blockchain