More

    The Next Bitcoin Halving to Happen Between April-June 2020: How It Can Spark BTC's New Bull Run

    In a recent article written by Pascal Thellman, the CMO at Bounty0x, he talks about Bitcoin’s halving and how it can affect the market during 2019. Every single time that Bitcoin’s network experiences a halving, its inflation is algorithmically reduced by 50%. This is something that will have an important impact on Bitcoin’s price.

    According to Mr. Thellman, Bitcoin increases in price the year before the halving. The next inflation reduction is expected to take place in May 2020. This is why it is important for investors to pay close attention to this issue. Since the halving starts getting priced a year ahead of the halving, the market could bottom as soon as early 2019.

    Thellman wrote about gold and how it works as a store of value. He mentions that it has an inflation rate that oscillates between 2% and 3% and that its entire supply can easily fit in just an Olympic Swimming Pool. This means that gold is a relatively scarce and durable asset. It currently has a $7 trillion market capitalization.

    Bitcoin (BTC) has an inflation rate of approximately 3.8% per year. However, when the next block reward will be reduced, Bitcoin will have a 1.8% inflation rate per year. In this way, Thellman explains that the most popular digital currency will be a harder form of money than gold.

    In this way, Bitcoin could become a very interesting asset for banks and other financial institutions after 2020. Thellman says that Bitcoin will evolve into an asset that will have all the qualities that large institutions and central banks look for in a reserve asset.

    He kept writing that Bitcoin and virtual currencies experience the effect known as ‘Buy the rumour, sell the news.’ In general, several assets have been affected by it, but in virtual currencies, this is more visible and real. This is something that can be seen when Bitcoin futures market were launched back in 2017 via the Chicago Mercantile Exchange (CME) and the Chicago Boards Options Exchange (CBOE). At that time, Bitcoin reached $20,000 and then plummetted down to $3,200 a few weeks ago.

    This pattern can also be seen some time before the halving. For example, in November 2011, a year before the first halving, Bitcoin started a new rally that ended the day after the halving after increasing 300%. In July 2015 happened the same just a year before the second halving.

    At the moment, miners are earning 12.5 BTC per block. That makes 1,800 per day. In general, some of these coins are sold at the market price in order to pay for mining costs and lock their profit. However, once the next halving will take place, miners will only earn 900 BTC a day, reducing Bitcoin supply.

    According to Thellman, it is necessary to start thinking about the next halving being 18 months away from it. After it, the effect in the network could be very positive.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,368FansLike
    2,785FollowersFollow
    4,136FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Binance CEO: Once QE Money Starts Flowing, BTC's Price Will Go Up ‘Very Dramatically'

    “Since coronavirus took over, business-wise the platform is doing really well” - CZ COVID-19, QEg, depression, and countries printing a lot of money...

    South Korean Central Bank to Roll Out Pilot Program to Test CBDC Through Dec 2021

    On April 6, South Korea’s central bank has made the announcement that it started a pilot program for assessing the logistics of a central...

    Former Goldman Sachs Fund Manager Suggests Allocating 25% in Bitcoin

    When Raoul Pal, the former hedge-fund manager who founded Real Vision first learned the coronavirus was spreading rapidly, he thought, “The whole world's f---ed,”. "I...

    PwC Report Reveals 2019's Crypto M&A's Dropped Sharply; Total Value Decreased By 76%

    The 2017 market boom led to the new era of funding in the decentralized space called ICO, however as we entered the bear market...

    How Much New Inflow Bitcoin Needs to Stay at this Price Level?

    For the last 2.5 years, $400 million of new investment each month kept BTC price at $7,000, after halving it would require just...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.