Bitfinex Was A Teaching Moment

With no Samsung-like news for bitcoin, prices are holding steady and are even a bit bullish. Pundits expect that trend to continue, unless the price goes below $600, when traders are advised to close long positions to prepare for an initial downside to $570. But let’s turn to the miners, who aren’t happy at all with a stable bitcoin price.

The bitcoin block reward was halved in July, which has changed the profitability of new miner entries and could impact the decentralization of bitcoin. According to a paper by the Institute of Electrical and Electronics Engineers (IEEE), reducing the block reward by half cuts total mining revenues if the bitcoin transaction fees and price remain unchanged. The IEEE suggests that disenfranchised miners who have had revenues cut might collude to sabotage the blockchain’s bitcoin transaction history.

And who can blame them? Miners are already showing the effects of a drop in profitability. KnCMiner declared

Read more ... source: TheBitcoinNews

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