There are a lot of names for it, but the Bitcoin halvening is happening in one year’s time and investors are already talking about it. As the latest cryptocurrency news show, the price increase of Bitcoin is already a phenomenon which may trigger the investors in the future – which are likely going to experience a monumental event.
If the current estimates are accurate, by this time next year the Bitcoin halvening will occur and the number of BTC issued on each block will drop from 12.5 to 6.25 which shows a 50% reduction. With this, the inflation of Bitcoin will also fall in half and will probably fall under the Federal Reserve’s 2% target for the US dollar, the altcoin news sites report. According to this, many believe that this simple dynamic will catalyze a big bout of growth in the cryptocurrency market.
A major correlation which is buzzing right now is the one between Bitcoin and inflation. If we see the Venezuelan Bolivar and what happened to it, Bitcoin is obviously advantageous over it. If digital assets are built correctly, consumer users of the asset should also be able to predict future inflation rates to a tee.
Kyle Samani of Multicoin Capital has talked about the Bitcoin halvening and what it may bring, stating:
“The first halvening brought inflation from 40% to 20%. The second from 20% to 10%. The next halvening is going to reduce it from about 3.8% to 1.9%.”
This, along with the simple laws of supply and demand, leads many analysts to believe that the next halving will be entirely bullish for the Bitcoin price. As reports on Bloomberg and many best cryptocurrency news sites show, 61% of around 2,500 users believed that BTC will rally into May 2020 and afterwards, citing supply and demand economics to back their cheery expectations.
However, other analysts and experts remind readers that people relating halvings to price booms are using a sample size of two which makes it “hard to assign any statistical significance to the event.” One of them is Gil Luria who spoke about the Bitcoin halvening and said:
“Since halving events are known well in advance, it is unlikely that they would have any impact on the price of Bitcoin. There are so many factors that impact the price of Bitcoin, but this should not be one of them.”
Nonetheless, many believe that in the long run, Bitcoin is going to do just fine.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post