We have prepared a short review of the main news and concerns regarding the Bitcoin Halving so that you can have the whole picture of what is going on in the market these days and what to expect afterward.
Firstly, let’s explain what the Bitcoin Halving is. As we know Bitcoin miners are being rewarded for processing a transaction and every 210,000 blocks, or roughly 4 years, the reward is being halved. In 2009 the reward for the mined block was 50 bitcoins. Then, after the very first halving it became 25, then 12.5, and today on May 11, in just several hours from the time of writing, it will become 6.25 Bitcoins per block.
It’s important to note that Bitcoin forks halve a month before the main chain (BTC) does. Here is the chronological order of the events.
- The Bitcoin Cash (BCH) block halving occurred on April 8, so consequently, the event decreased block rewards for miners from 12.5 to 6.25 for each block.
- The first halving of Bitcoin Satoshi’s Vision (BSV), which was forked from BCH in 2018, took place on April 10. By the way, both BSV and BCH have 21 million coin supplies, as Bitcoin (BTC) has.
- Finally, Bitcoin Gold (BTG), has been the next fork which halved after BSV on April 18.
Now let’s move on to bitcoin price predictions and how the market will respond. In fact, halving takes too much attention because people believe that it will increase the bitcoin price and that’s why many traders have already started betting for the future price of Bitcoin. Here is the list of some predictions from experts.
- TradeBlock, a blockchain analyst company, predicted that the price per Bitcoin will be $12,500 after the halving.
- Salah-Eddine Bouhmidi, the financial market analyst at DailyFX, told Cointelegraph: “After the halving, I can imagine a new attack on the $14,000 by 2021. Of course, not only the halving plays a role here — but other external factors can also lead to positive effects on the cryptocurrency market.”
- Paolo Ardoino, the CFO of Bitfinex, said: “By the end of 2020, I think the Bitcoin price will be at least $20,000.”
- Fundstrat’s Tom Lee believes Bitcoin could reach $27,000 by August of 2020.
- Rekt Capital took the most optimistic position by writing on Twitter: “Price of one $BTC will be $385,000–$400,000.”
- PlanB, a pseudonymous analyst, says he expects the halving will lead to a considerable rise in the price over the next few years. He thinks if BTC doesn’t strike $70,000 by May of 2022, the stock to flow model will be invalidated.
So now you have the picture of what Bitcoin Halving is, let us also see what kind of ideas the industry leaders share and very soon we will see if the buzz created around the event is just a hype or this is something that will bring a real change to the industry.
- Paolo Ardoino, CTO of Bitfinex said, “I don’t expect Bitcoin to drop below $6,000. We might see some FUD before the Bitcoin halving. By the end of 2020, I think the Bitcoin price will be at least $20,000.”
- Robert Schwertner, Founder & CEO of CryptoRobby commented, “Can I predict the Bitcoin price at the end of 2020? Sure, to the third decimal place! 7,000 euros — plus/minus 5,000 euros. I see no future for Bitcoin. It is not suitable as a means of payment — who wants to spend 10 minutes at the checkout in the supermarket for verification…”
- “Historically, we have seen a price surge in the 1.5 years after the halving, so it’s highly possible we’ll see new entrants in the market,” said Dave Ripley, COO of Kraken.
- Lennix Lai, OKEx’s director of financial markets, noted, that bitcoin halving could be understood as “quantitative tightening” on crypto.
- Other exchanges said bitcoin halving could be an insignificant event if the COVID-19 continues.
Seems everyone is too concerned about the Bitcoin Halving event and many of them want a drastic change in the price. The good news is today is THE DAY of the historic event and we can witness the reaction of the market and see who has been closer to reality.
Stay healthy and stay tuned!