Bitcoin Halving and its Possible Significant Effect on BTC Price
Bitcoin halving is the most important event in the history of BTC that has always had a significant effect on the price value. The next halving is expected to happen in May of 2020 and the eyes of crypto lovers are sticking on it. The BTC rewards for mining will be decreased into half that will definitely have a disturbing impact on the miner community.
The first halving of digital gold happened in 2012 which cut the rewards by 50% from 50 to 25BTC. Then another halving event occurred in 2016 and the reward halved from 25 to 12.5 as mining prize. Similarly, the third halving is going to occur in 2020 which will further reduce the rewards to half from 12.5 to 6.25.
The halving of BTC happens after every four years when the required amount of blocks is completed and the numbers of blocks that completed after every four years are 210,000. The reduction of block prize will, of course, demotivate the miners but on the other hand, they will be benefited in the case of price surge because the worth of coins will be increased as a result of increased value.
Effect on Price Value
The price value will face an unnatural bent in it as a result of prize reduction and may pump in an upward direction. The value was recorded to $1,000 in 2013, one of the first highest achievements on the part of Bitcoin since its emergence in the digital industry. And the worthy point to be noted here is that the surge happened after the prize reduction of mining.
A similar case was observed in 2017 when price surged to it’s all-time highest value, $20,000, after the second halving occurrence. Now, it’s time to see another change in the value and the year 2020 is very important in its entire journey.
Analysts are very optimistic and sharing their sentiments, full of hope, about the targets of BTC in 2020. John McAfee claimed that value will cling to $1 million at the end of 2020. Similar speculations have been quoted signaling the $1 million target in 2020.
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