Bitcoin Halving, forecasts,
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Estimated reading time: 5 minutes
by Federica Pace
A highly anticipated event that of halving or Bitcoin Halving which interests millions of traders and cryptocurrency investors.
The digital currency registered Satoshi Nakamoto is dividing the Crypto Community as to whether the halving of the reward will have a significant impact on the price.
All predictions on the BTC price they are based on price behavior based on previous halving, but what are the most reliable forecasts?
That’s why many experts predict a 750% increase it’s a forecast price of $ 56,000 for Bitcoin.
Bitcoin Halving: a bullish potential after two halves?
Coming on third Bitcoin Halving for the most famous cryptocurrency in the world and with 11 years of life.
The first halving of Bitcoin occurred on November 28, 2012 where the reward went from 50 to 25 BTC for each block confirmation.
While the second halving occurred in July 2016 where it went from 25 to 12.5 BTC today.
On both occasions the price of bitcoin has increased exponentially, and this suggests that this third time there may be a surge and a great rise in the price of Bitcoin by 750%.
In 2012, BTC’s price was $ 12 and in the six months following halving it went to $ 130.
In 2016 the BTC price was at $ 650 and after 6 months from the halving the BTC price rose to over $ 1000.
And now? The third halving Bitcoin is expected in May, what will the forecasts of the gold price of digital currencies be?
On October 20, 2019 the Bitcoin price was $ 8,222. even though the quote was 59% lower than the historical Bitcoin high of $ 20,089 (December 17, 2017).
Bitcoin Halving: 1 trillion after 2020?
Bitcoin towards $ 1 million? On November 29, 2017, John McAfee predicted that Bitcoin would reach a price of $ 1 million by the end of 2020.
But this did not happen. The bitcoin price could reach 56,000 USD in 2020 or 2021, according to a new model of predicting the price of Bitcoin.
To better understand the dynamics and how analysts speculate and predict we share an interesting chart that traces the effect of a growing scarcity due to the halving of Bitcoins in May 2020.
Let’s assume that the stock-to-flow ratio (SF) directly affects the recording of prices based on historical data.
“The hypothesis in this study is that scarcity, measured by [stock-to-flow], drive value directly, “he explains.
The model uses SF as data input based on the formula of the law of power (BTC = a * SF ^ b) to predict the possible price of Bitcoin.
According to this model: the expected market value for bitcoin after mid-May 2020 is $ 1 trillion, which translates into a predicted Bitcoin price of 56,000 USD.
Will Halving Bitcoin reduce BTC’s offer on the market?
The third halving of Bitcoin will see the mining block reward to pass from 12.5 to 6.25 BTC in May 2020.
This, of course, would reduce the supply of bitcoins on the market and could actually have huge implications for the price.
The last halving of the reward occurred in the summer of 2016. It was during this period that the bitcoin price started its long run to the all-time high of nearly $ 20,000 in December 2017.
The next scheduled halving will also likely have a significant impact on the market as history often does not repeat itself.
Will Bitcoin be better than gold after Halving?
Bitcoin is the first digitally “scarce” asset and is referred to as peer-to-peer gold, “digital gold “ or “Gold 2.0”.
In addition to being a scarce resource, however, it can also be easily stored.
Therefore, it is not surprising that some analysts predict that it will become more popular than gold:
“We believe Bitcoin is better than gold […] if we are right, over time the market capitalization of bitcoin will exceed the market capitalization of gold (about 7 trillion dollars) “.
