At 630,000th block height roughly 19:23 UTC time on May 11, Bitcoin underwent the so- called "halving" which reduced the reward from 12.5 BTC per block to 6.25 BTC of miners. This event will also happen in Bitcoin Cash and BitcoinSV because of their similar algorithm.
What does this mean for us? Well, if your are a miner who maintained and operate this expensive ASIC mining hardware, you really have to care about your profit in this event. Reducing the mining reward, means reduced money. Miners maybe thinking to switch back and forth into Bitcoin Cash, Bitcoin and BitcoinSV, which they can do to a very limited time because halving event will almost occur in the same time at 630,000 block to the three coins, and whichever can bring much profit. So really this hype "halving event" is only for the miners.
What about the users? Like me and majority of people, it doesn't matter at all. Mining cryptocurrencies is a way of validating every transactions in the network. Just like what is happening in the ATM card as we swiped it, users really care less about that process. What the users care is if the transactions made are done. If one withdraw BTC from an exchange, what matter most is if that BTC reflect in the user's wallet. The same goes when sending.
So what next after the halving? Will reduce reward means increase in value? I think nothing much will change, except for the reduced reward of miners. This mining process is very crucial to the security of the network. When miners migrate to other coins to seek for better profit or stop at all, it reduces the credibility of the network because its reduces decentralization leading to a centralize network and will be prone to the so called 51% attack. As for the value of Bitcoin, an increase in value will only come when a much larger adaption will happen. The masses which will adapt this new kind of money will only care less about how transactions processes are done in the background. Until some old problems of Bitcoin be solve, and be like our own day to day very easy and reliable fiat currency.
What Bitcoin is eyeing now is to be the "digital gold" that can put it status to moon. This only happen if the governments decided to create a new monetary system in which currencies are pegged to Bitcoin or Gold or at least make Bitcoin as one of the reserved currencies in the world.
Bitcoin is old, and its technology has a limit. But still who knows? Only time can tell.. this maybe its only chance.
