Our Bitcoin halving countdown clock is on and counting backwards to May 7, 2020, the date I predict the blockchain will reach the next halving and $BTC will be more than double its year previous price per coin. [Share our clock or copy our code and embed it yourself]
Atlanta Digital Currency Fund’s chief investment officer, Alistair Milne, has said that the block reward halving of Bitcoin could push the price of the dominant cryptocurrency to massive gains in the next 12 months, or any 12 month period leading up to the halving.
Do YOU believe Milne’s claim and basis? If so tell me why, and if not, let’s hear it.
According to an article in CCN Friday March 8, 2019 titled, “Bitcoin’s Impending ‘Halving’ Could Spark Meteoric Price Boom,” the impending ‘halving’ could lead to these massive gains.
Bitcoin’s May 2020 halving could lead to a meteoric price boom for the flagship cryptocurrency. | Source: REUTERS / Dado Ruvic / Illustration / File Photo
Bitcoin’s Impending ‘Halving’ Could Spark Meteoric Price Boom
A block reward “halving” in Bitcoin is referred to as the mechanism that decreases the amount of Bitcoin generated by miners after mining a block.
On the Bitcoin network, the blockchain, miners solve complex cryptographic problems using computing power to process transactions, which are then placed in blocks to form a blockchain.
To compensate miners, every block generates a fixed number of Bitcoin to “pay” the miners for serving the community and running the nodes which create the blocks, and this “mine” the cryptocurrency “coin.”
The block reward, or fee to miners, of the Bitcoin network decreases by half for every 210,000 Bitcoin mined. Traditionally, a block reward halving like this has led the price of Bitcoin to rally because it reduces the rate in which new BTC is produced.
As Bitcoin nears its fixed 21 million supply, the scarcity of the digital asset increases, which boosts the price and the demand from the market.
Historically, the Bitcoin price has tended to move a year before the block reward halving. While a few analysts claim that the halving is already priced in, the numbers show that it gradually gets priced over time, and even accelerates, as the cryptocurrency approaches its halving date.
See the related article by cryptocurrency author Joseph Young of Bitcoin Analysis, Bitcoin Price News at CCN.com
Meanwhile, leave me your comments and thoughts on where (and why) you think Bitcoin, Litecoin, Ethereum and other cryptocurrencies are headed into 2020 and beyond.