Following the reduction in the remuneration of miners in the Bitcoin network can happen in a year and a half. May 25, 2020, the reward miners will be reduced from 12.5 to 6.25 BTC BTC per found block. Some experts, citing the scenarios of the previous cycles, I believe that each “halving” is preceded by a systematic increase in the price of cryptocurrency.
The reward for generating a block is halved every 210 thousand units. This event is known as the halving (halving). Such emission policy makes Bitcoin a deflationary currency, and in the end, in 2140, the emission of new coins to fall to zero. Just a LAN will be generated only 21 million bitcoins. However, the miners will continue to find stimulus blocks and after the year 2140, the reward for their search would disappear altogether, because they will continue to receive a fee from the user for confirming the transaction.
According to analysts, a decline in the rewards for mining in half leads to an increase in the price of cryptocurrency. Analytical framework indicating the repetition of this scenario were posted on Twitter @100trillionUSD, the same opinion is shared by the brother of the head of Digital Currency Group is Barry Silbert, Alan Silbert. In his Twitter account, he reminded that the event is near:
“To reduce an award double for the Bitcoin mining remained 500 days”
According to the schedule published @100trillionUSD, the lowest values of Bitcoin demonstrated for 12-17 months to Polovinnaya, after which came the phase of gradual growth. The chart also demonstrates what can be movement of prices in six years.
Head of research of the Blockchain Garrick, Hillman said earlier:
“In previous alvingham the last two months, we have seen a steady increase in the price of Bitcoin, followed by a rise after the reduction of remuneration”
It should be noted that the market situation may change until may 2020, when with the arrival on the market players on wall Street. The launch of the platform Bakkt, though with delay, but is scheduled for the 24th of January.