Crypto mining is the method by which Bitcoin or other cryptocurrency transactions are verified and added to the blockchain. This can be done by anyone with mining hardware — from independent individuals to scaled cloud mining facilities. These crypto miners run the “proof of work” math on their computers to verify crypto transactions, and when they add a block to the blockchain, they are rewarded for their work with newly created Bitcoin, as well as transaction fees. Without crypto mining, there would be no Bitcoin, no blockchain — and especially no decentralization to the entire system.
One event may have a significant effect on how crypto is mined in the coming months: the block halving event, when Bitcoin rewards will be cut in half as a way to regulate the system and stop inflation. While halving events have seen Bitcoin prices soar in the past, it may cause individual miners to pull out of their mining efforts.
We wanted to know what Bitcoin owners knew about the mining process, as well as get their thoughts on how the upcoming block halving would impact Bitcoin. We conducted a survey on March 17, 2020 of 750 respondents who either own or have owned Bitcoin at some point in the past.
- 50% of miners expect to see the price increase after the next halving.
- 60.8% felt either somewhat or very concerned over Chinese organizations control of the Bitcoin network.
- 64.9% – believe that a 51% Attack is a legitimate concern for the Bitcoin community and investors.
- One third believed that power will shift from large centralized groups to smaller home miners.
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