By
Godfrey Benjamin
May 10th, 2024
Two years after the last bullish market, comes yet another era of Bitcoin Halving. A period during which the cryptocurrency price is anticipated to hit an all-time high.
Bitcoin halving is a term used to refer to a period in the life span of the crypto where the reward on every block been created on the blockchain is slashed by half. This current reward-base for mining a single block on the blockchain was globally pegged at 12.5 BTC.
Since the entire mining process is solely based on a set of mathematical functions, and with a daily mine of 1,800 blocks, experts estimate the digital token to be due for the next halving by 2020. With the current amount of Bitcoin in circulation ranging to about 17,750,000 Bitcoins, the next halving phase is believed to occur in the next four years to the previous halving – 2024. This mechanism was put in place to ensure a prolonged credibility of Bitcoin.
How Bitcoin Halving Inflates the Price of Bitcoin
So long as the overall supply of Bitcoin remains the same or increases over time, ‘bitcoin halving’ would always give rise to an increase in the value of the cryptocurrency in-turn. According to Greyscale – an asset management firm, this halving seems to be the best entry point for those who missed out on the last bull-run to delve into the market to avoid fomo in the coming years.
In a research conducted by the global cryptocurrency investment firm, it was gathered that a reasonable number of Investors were oblivious of the impact of this block halving, not to mention its existence prior to now:
“For investors with a multi-year investment horizon and a high-risk tolerance, the confluence of discounted prices, improving network fundamentals, strong relative investment activity and the upcoming halving may offer an attractive entry point into Bitcoin. This is especially relevant for investors building core strategic positions in Bitcoin over time.”
Even though some blockchain proponents anticipates this meteoric surge to happen months before the halving occurs. Billionaire blockchain investor John McAfee, predicts this rise in price to happen a year after the halvings. He further propagates this idea, stating that the price would soar to a whopping USD $1million by 2020:
“I still expect Bitcoin to reach at least $1 million by 2020, by simple math.”
He also went so far as stating:
“People will start using bitcoin for payments and receipts. They will stop using the US dollar, Euro, Chinese Yuan which, in the long-term, devalues these currencies.”