The Obvious Reason Why Bitcoin Halving Will Skyrocket Its Price Is Law of Supply and Demand
Dejan Kralj
Bitcoin
4 years ago
1 QCP
The approach of this third Halving in the history of Bitcoin is putting the world of cryptocurrencies in turmoil. Bitcoin has seen its price rise from $6,950 to $10,300 in the 40 days since the beginning of the year.
Since the reward given to miners for validating a block is currently 12.5 BTC, we have the creation of 1800 new Bitcoins every day on average.
For 11 years, Bitcoin has never been hacked and its network has an uptime of 99.98%.
The Bitcoin therefore gives very strong guarantees on its functioning and the respect of this availability of new Bitcoins on a continuous basis.
As of February 15, 2020, Bitcoin is at block 617,464.
When the 630,000 block is added, Bitcoin’s third Halving will take place.
This leaves 12,536 blocks before reaching this crucial moment in the history of Bitcoin.
On May 12, 2020, the reward allocated to miners for the validation of a block will therefore be halved to 6.25 BTC.
From 1800 new Bitcoins produced every day, we will decrease to only 900 new Bitcoins produced every day.
With this third Halving, Bitcoin will therefore experience a monetary creation shock.
The mere fact that Bitcoin broke the $10K mark for the third time in its history at the beginning of February 2020 had a strong media impact.
The result is immediate with more and more people asking questions about Bitcoin in order to acquire some.
And all this is nothing compared to the waves of sign-ups on a platform like Coinbase, which are likely to happen as soon as the price of Bitcoin rises above $15K, and then $20K.
Following the economic model defined by the law of supply and demand, it seems obvious that the third Bitcoin Halving will have a huge effect on its price.
Bitcoin will enter a virtuous circle that will allow its price to beat its previous historical record of $20K reached at the end of 2017.
In order for this historic price of Bitcoin to last, it will be essential that the price increase continues to occur in the same way as it has since the beginning of 2020.
https://medium.com/in-bitcoin-we-trust/the-obvious-reason-why-bitcoins-halving-will-skyrocket-its-price-is-law-of-supply-and-demand-8ce3a1c54c12
Since the reward given to miners for validating a block is currently 12.5 BTC, we have the creation of 1800 new Bitcoins every day on average.
For 11 years, Bitcoin has never been hacked and its network has an uptime of 99.98%.
The Bitcoin therefore gives very strong guarantees on its functioning and the respect of this availability of new Bitcoins on a continuous basis.
As of February 15, 2020, Bitcoin is at block 617,464.
When the 630,000 block is added, Bitcoin’s third Halving will take place.
This leaves 12,536 blocks before reaching this crucial moment in the history of Bitcoin.
On May 12, 2020, the reward allocated to miners for the validation of a block will therefore be halved to 6.25 BTC.
From 1800 new Bitcoins produced every day, we will decrease to only 900 new Bitcoins produced every day.
With this third Halving, Bitcoin will therefore experience a monetary creation shock.
The mere fact that Bitcoin broke the $10K mark for the third time in its history at the beginning of February 2020 had a strong media impact.
The result is immediate with more and more people asking questions about Bitcoin in order to acquire some.
And all this is nothing compared to the waves of sign-ups on a platform like Coinbase, which are likely to happen as soon as the price of Bitcoin rises above $15K, and then $20K.
Following the economic model defined by the law of supply and demand, it seems obvious that the third Bitcoin Halving will have a huge effect on its price.
Bitcoin will enter a virtuous circle that will allow its price to beat its previous historical record of $20K reached at the end of 2017.
In order for this historic price of Bitcoin to last, it will be essential that the price increase continues to occur in the same way as it has since the beginning of 2020.
https://medium.com/in-bitcoin-we-trust/the-obvious-reason-why-bitcoins-halving-will-skyrocket-its-price-is-law-of-supply-and-demand-8ce3a1c54c12
- Cryptocurrency
- Bitcoin price analysis
- Bitcoin
- Bitcoin halving
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