Halving of the most famous cryptocurrency is expected to take place in mid-May, and market expectations are high. Meanwhile, one of the richest Bitcoin owners is skeptical and believes that halving in 2020 gives false hope to naive investors who want to get rich quickly.
What is Bitcoin Halving?
Halving occurs when the rate of new bitcoin creation is halved, which happens every four years or so. The first bitcoin reduction took place in 2012, which reduced the mining prize from 50 BTC to 25 BTC. In 2016, halving again reduced the prize to 12.5 bitcoins per mining block, and when mid-2020 arrives, only 6.25 new BTC will be generated with each extracted block.
What are the predictions about Halving BTC?
It is recognized that the higher the price between the upcoming halving and the previous one, the smaller the decrease in hash rate. Still, it’s hard to imagine that the rate rises to the level needed to avoid a serious decrease in hash rate. In turn, a technical analysis veteran claims that in the face of the surrounding fundamental data, bitcoin may be ready to grow to $ 100,000.
Peter Brandt predicted the BTC price rally to $ 20,000 in December 2017. Now, in an interview with Real Vision, he says that the current behavior on the stock exchanges is in favor of expecting great price increases.
Bitcoin from 500,000 USD?
The founder of Pantera Capital, Dan Morehead, predicts that there are over 50 percent the chance that the price of bitcoin will rise to over USD 500,000 for one piece. He looked at the results on the bitcoin chart, but also on gold, oil and high-risk market assets. He finally admitted that if the supply of new bitcoins is reduced by half, the price should increase. Morehead also noted that cryptocurrency is now performing better on the chart than gold.
Many specialists claim that Bitcoin is now entering the third phase of expansion. Therefore, long-term price predictions among the majority are optimistic. Currently, investors are looking for opportunities to buy along with falling prices in halving.
In turn, others say that the current halving followed by a sharp sale of cryptocurrency, which means that the current BTC rally may ultimately be a failure. It is said that the time of halving is combined with its controversial S2F model, in which BTC will begin to grow, but not to 500,000, but to 100,000 USD and in a fairly short time, immediately after halving and this will be the final price, which the currency can achieve.