There are many factors that affect the cryptocurrency industry in terms of the financial sector and these include blockchain technology changes, regulation from the outside world as well as the decisions taken by crypto users. In the case of the technological changes, it should be noted that cryptocurrency, because it is a digital currency, is highly affected by whatever changes are made whether to the blockchains that create the cryptocurrency, the process of mining or the security of exchanges. All these need to be taken into account as cryptocurrency progresses into a new stage of maturity.
According to reports, crypto mining giants Bitmain intends to reduce its workforce by up to 50 percent in 2020 and this is linked to the upcoming bitcoin halving.
Down 50 Percent
According to the reports, Bitmain is planning on a personel optimization strategy that will involve cutting its workforce by around 50% and this is to be done before the next bitcoin halving by May 2020. It is also expected that the layoffs will be completed before January 17, 2020, which is their general meeting for the year.
The halving which will take place in May means that the number of rewards that will be given per block to bitcoin miners will reduce significantly and this is expected to create a discouragement in the market for crypto mining seeing as the rewards will be less. Bitmain already reduced its workforce by 50 percent in 2019 and they called it part of their plans to create a more sustainable business model as well as recruit the best talent from various backgrounds.
It is also interesting to note that the halving of the bitcoin rewards blocks will likely have a significant impact on many other aspects of the industry beyond just mining. A reduction in miners could affect the global bitcoin supply and many speculate as to what will happen when more halvings take place and more importantly, what will become of the industry in the far future when the last bitcoin block has been mined.