Cryptocurrency

Bitcoin Halving in 50 days – How is the BTC price in the short

The Bitcoin Halving is in front of the door. In 50 days, the number of BTC will be halved, which gets a Miner per Block found. This regular event has in the past led to a strong Bitcoin rate increase. The strong blisters have been shown but it is only about a year after that. At the time, but there was no pandemic, and no crisis on the global markets.Is overshadowed the Bitcoin Halving by the Coronavirus and the financial crisis, or we experience a further rate rise until the BTC Halving? What are the long-term prospects, we can speak of this Event?

Bitcoin Halving will reduce the offer in the long term

In Bitcoin Nothing is so firmly anchored as the maximum number of Coins and the amount of new BTC per Block. These properties make the first and most popular crypto-currency is extremely scarce and encourage regular blisters. The number of BTC, which is supplied, is set for each 210,000 blocks (about 4 years). Currently the Block Reward, so what is to get the Miner if you find a Block that is 12.5 BTC. This number is reduced when the Bitcoin Halving in may to 6.25 BTC. Thus, only half is created Bitcoins per Block/hour/day/year/etc. That inevitably leads to a shortage of the possible offer, namely by a Block on the other.

Supply and demand side, in comparison

Well and good, but why in the world would have a positive effect on the Bitcoin price? The rate is determined by supply and demand. On the demand side, we have new investors coming in every day; Hodler, who continue to expand their Position in Bitcoin; institutions that want to diversify their Portfolio. On the supply side, we have, mainly, the Miner, the need to cover your current costs for electricity, Hardware, staff and infrastructure; investors realize on the way up, gains; Weak hands “weak hands” that come with a larger price drop in a panic, your BTC to liquidate and the entire Crypto Space curse.The Miner dominate the supply-side and be able to achieve in 50 days, only half of the BTC from the entire Mining process. Currently, the number amounts of Bitcoins every day on the 1,800 piece. After the Bitcoin Halving, there are only 900 per day. So the possible offer on the market by 50%. Any offer because we don’t hold mines exactly the various Miner know at what cost the world actually is and how many Bitcoins you sell them/.On the demand side, it looks more than stable. The demand for Bitcoin seems to continue to rise. New investors are coming daily in the market. Hodler see the current development in our financial system is a promising Alternative to Bitcoin and invest regularly. Institutions show a increased interest in BTC, which should rise as a result of increasing regulation even further. Even 40 German banks and payment service providers to jump on the crypto train and want to offer this year, Bitcoin and co. for your customers and keep.We summarize it again briefly. The supply of BTC will be halved in the Bitcoin Halving all 4 years. Currently the demand is rising and it seems that this should change in the near future. In the case of an excess demand, the price rises forced. Of course, many other factors play a role, but the trend should be clear to everyone.Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!

Bitcoin exchange rate in characters of the Halvings

But this does not mean that we will now see, in may of any astronomical rates. The effect of the reduced supply is reflected in the rule until months or even years later. Until the Bitcoin Halving of the price of the speculators is driven may be high. According to the Motto “Buy the Rumor, Sell the News”. Also new investors, the attempts by the desperate rescue of the Central banks to the alternative investment possible search for could lead to additional buying pressure. In addition, the Bitcoin price has detached from the traditional financial market, and is now back over the $ 6,500 mark. The Combination of these factors could lead to a further rate increase to the Bitcoin Halving.In the long term, it is to BTC even better. This Bitcoin Halving will not be the last. Every 4 years until 2140, so an Event is to take place. Each time the number of BTC that are emerging will be reduced to half. Currently, we are in front of the third Halving in the history of Bitcoin. We have the good fortune to experience a very large reduction. This will decrease each time Halving logically, as well as the effect on the Bitcoin price. Already in 2032, we will have 99% of all Bitcoins gemint. Currently, we are “only” 87%.

BTC is the Alternative in our financial system

The current crisis has overshadowed this important Event. Therefore, can not currently say whether the Bitcoin price will behave like the last Halvings or us this time, but still a Surprise in store. The current events in the world to strengthen the Fundamentals of Bitcoin. The limited number will make BTC in the long term, to the “hardest” Asset. It can even make Gold in some areas in the shade. In addition it is decentralized, transparent and programmable. It is the next step in the evolution of money and power, it is at last decentralized, censorship-resistant and free. Bitcoin is much more than just a speculative object, it is a possible solution to our ailing financial system.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.