This year has been an interesting year for Bitcoin, with a lot of price surges going on. Currently, many Bitcoin investors are looking forward to the Bitcoin halving that is bound to happen soon.
From January, Bitcoin’s price has risen to almost 50% making Bitcoin investors have major gains. Since Bitcoin is like the anchor cryptocurrency, other cryptocurrencies have had major gains as well, with some even getting triple-digit percentage gains. According to Bitcoin bulls, there is still so much that is expected.
According to Binance CEO Changpeng Zhao (CZ), the Bitcoin price is set to increase. This is contrary to market forecasting. He believes that halving will have a major impact on the price. The CEO emphasized that he does not give price predictions because they will fail 50% of the time, but he is confident about the bitcoin halving impact.
According to him, Bitcoin halving will mean that investors will have to spend more to mine bitcoin than it initially did, and that will make miners increase the price of Bitcoin. That will limit the number of bitcoin released in the market. The result will be a low supply and higher demand.
Many traders and investors are looking forward to Bitcoin halving which will happen in May. The reward of mining a new Bitcoin block will reduce from 12.5 to 6.25, which will drop the supply the bitcoin, and in turn, increase its demand.
So far, there are two bitcoin halving that has already taken place, one in 2012 and another one in 2016. Bitcoin halving takes place every four years until the bitcoin market cap of 21 million is attained.
There is a controversy on whether the bitcoin halving has been priced. Normally like traditional investments, it should be priced based on the expectations of the market. In that case, the expected halving would be an indication of the expected gains.
According to an interview that CZ had with BlockTV, the market is not efficient, and with this, people should not assume that history will repeat itself. According to economics, the bitcoin price is set to increase, but that is just theory. He is, however, enthusiastic about a positive price gain.
So far, Bitcoin halving has gathered a lot of interest, and the number of Google searches related to bitcoin halving is rising by the day. That is already a positive indicator of the halving.
There is still a big batch of people who believe bitcoin halving will cause a price dip.
Image from https://www.flickr.com
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