Should Bitcoin holders be worried about the halving?

Bitcoin holders do not have to worry about the halving event as it is a planned and expected event. However, holders need to be aware of the potential short-term market volatility before and after the halving. Historically, Bitcoin halvings have been associated with increased market attention and speculation, leading to price volatility. Holders are advised to approach the halving with a cautious and informed perspective, taking into account their personal risk tolerance and investment goals.

How does the halving affect miners?

After the Bitcoin halving, the block reward received by miners will be halved to 3.125BTC. With fewer block rewards, some miners may be unable to afford it due to rising electricity costs and hardware maintenance costs.

As miners cannot earn enough income through new Bitcoins, the market may become more decentralized. As miners close their mines or switch to mining other digital currencies, the overall computing power of Bitcoin may decline. Despite this, the speed of mining blocks and distributing Bitcoins into the ecosystem will not be affected because the mechanism adjusts the difficulty of verifying Bitcoin transactions to maintain a stable amount.

On the surface, the Bitcoin halving is just a policy to simply reduce the income of Bitcoin miners, but it is actually a means to control Bitcoin inflation.