News around Bitcoin always makes the headline, this time it is about the halving of the bitcoin. Halving simply means that miners will now mine half the bitcoin they were usually doing. There are speculations of the Bitcoin Price increase!!!. It is estimated by the experts that price can shoot to double also.
So on 11th May which marks 3rd halving event for Bitcoin, could see it’s price getting double as miners are looking to cover the costs of their work.
Piatt and Decred’s Co-founder and Project lead Jake Yocom predicts the price increase in Bitcoin all because of a reduction in the mining payouts for the same.
He in a statement said that if the amount of the work gets halved and miners are getting the same payments, so to have profits there is a very much likely chance of doubling the price of the Bitcoin. More likely miners will be the ones who were responsible for the price increase.
Approximately after every four years, Bitcoin has to undergo a halving event that is built into its code. Therefore each halving event cuts Bitcoin’s miners reward by half.
Bitcoin’s maximum supply is 21 million coins, out of which all coins are not yet in circulation. Since its inception around 2009, Bitcoin has exponentially increased its circulation through mining rewards.
Every 10 minutes, a miner somewhere in the world finds a block on bitcoin’s network, releasing fresh 12.5BTC into the market & also receiving the same equivalent reward.
On May 11, this reward will drop down to 6.25BTC.
Bitcoin’s price could double in the coming days
According to this fundamental market shift, “In the short term, Bitcoin price is expected to be double, but long term predictions are difficult to make due to the dynamic nature of cryptocurrency markets”.
The stock-to-flow ratio is increasing substantially as a result of this halving event, which means it is good for the long term price of Bitcoin.