Bitcoin’s Magical Unicorn Halving Hype is Still One Year Out, But What Should We Expect in 2020?
Bitcoin (BTC) has been expanding all around the world and it has reached a large number of users and investors. However, it will be difficult in the future for interested individuals to purchase at least 1 Bitcoin.
There are only 21 million BTC that will ever be released to the market. Every around 4 years, the new Bitcoins created drop by 50%, which has a very positive effect on the price of the digital currency if there is an increased demand for it.
Bitcoin Halving To Take Place in May 2020
Every four years, the Bitcoin reward for miners drops 50%. We currently are a year ahead of the next halving that will drive rewards from 25 BTC to 12.5 BTC. This process is expected to continue every approximately four years until the year 2140. Bitcoin has already halved to 25 BTC in 2012 and 12.5 in 2016.
Fiat currencies work in a different way than Bitcoin. They are inflationary assets that tend to have a monetary policy guided by a government at a specific moment in time. When a new government creates and prints money it generates inflation, which devalues the value of the current banknotes and coins in the economy.
Bitcoin has a low inflation monetary policy until the year 2140. Bitcoin will have an inflation rate per ear after 2020 of 1.8 percent for 4 years. This inflation rate will fall again in 2024 and so on. After 2140, there will be no new Bitcoins issued, which means that there will be a fixed supply of 21 million BTC.
As the new issuance of BTC decreases, the selling pressure from miners also falls. With an increased demand for the digital asset, it is expected for Bitcoin to increase in value. Not everyone will be able to own a whole Bitcoin in the future.
Looking at what happened with previous halvings, Bitcoin reached new all-time highs after them. Although we don’t know what is going to happen in the future, halving events tend to be bullish for the digital currency, and this is something that can be seen a year before the halving. In general, the price of the virtual currency tends to grow a year before the halving moment.
— Tuur Demeester (@TuurDemeester) May 16, 2019
At the time of writing this article, Bitcoin is being traded around $7,850 and it has a market capitalization of $139 billion.
Bitcoin’s price is $46,010.68 BTC/USD exchange rate today. The real-time BTC market cap of $860.94 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $26.28 Billion and live coin value change of BTC -2.88 in the last 24 hours.