At 24 months away from the last bull market, yet another era of Bitcoin Halving: experts predict that the price of cryptocurrency will reach the historical maximum. Is that right? What should we expect? Let's find out the forecasts!
Bitcoin halving: how does it work?
The amount of new Bitcoins created and earned by miners with each new transaction block is about to be halved.
The last Halving took place at July 2016, and the next will be scheduled for May 2020. The current prize for the extraction of a single block on the blockchain is anchored to 12,5 BTC plus any transaction fees.
The entire extraction process is based solely on a set of mathematical functions and the current amount of Bitcoins in circulation is approximately 17.750.000.
This half-life mechanism has been put in place to ensure greater transparency in the Bitcoin monetary policy.
As long as the overall offer of Bitcoin remains unchanged or increases over time, the halving of the cryptocurrency would always lead to a net increase in the price of Bitcoin.
Bitcoin Halving: the best time to start investing?
Secondo Greyscale, an asset management company, the halving of Bitcoin seems to be the best time to start investing in the cryptographic market, even if the risk of losing capital remains.
In a research conducted by the cryptocurrency investment company, it was found that most investors were unaware of the impact of this halving of the blockade.
Although some supporters of the blockchain expect this soaring of the Bitcoin listing take place months before the half-life occurs.
Indeed, there are those who expect a steep increase in the price of Bitcoin, which would be destined to rise to over a billion dollars by 2020 (see how buy bitcoins).
And, there are those who expect Bitcoin to replace legal currencies, the US dollar, the euro, the Chinese yuan etc., which will be destined to devalue.
The vast majority of the Miners Community does not seem worried about the halving of Bitcoin.
Most believe that there will be a small decline in the hashrate of the network.
We can conclude that there is a clear correlation between the halving and the volatility of the Bitcoin price.
These changes on the supply side take place every 4 years and it is important to keep them in mind to get a better picture of what affects the price of criptovaluta.
