The Bitcoin price is considered to be highly volatile in the short term, but for the crypto asset, the last several months have been an especially rollercoaster ride. The Bitcoin price was under $5,000 a month later after achieving a 2020 high of over $10,000 in mid February. The price of the world’s most successful cryptocurrency has since recovered marginally to around $7,300.
This enthusiasm regarding Bitcoin’s price will only grow over the next month as Bitcoin’s third halving begins. A halving of Bitcoin for those who don’t know is when the amount of new Bitcoin generated approximately every 10 minutes is cut in half. This increase in the rate of Bitcoin issuance is expected to occur every 210,000 blocks (about four years).
Blockware Solutions Outlook
Although halving the issuance rate of Bitcoin has obvious effects on the Bitcoin market’s supply-side economics, Blockware Solutions claims that the consequences of halving for Bitcoin’s price go far beyond supply shifts.
As explained in their latest study, halving also has the side effect of placing newly generated Bitcoin into stronger hands because of the very fact that weak miners with limited margins are being driven off the network once the block reward subsidy is cut in half.
Additional Consequences of the Halving on the Bitcoin Price In addition to the advantages of miner capitulation, which was addressed in other forms in which the Bitcoin price might be impacted by half next month. For one, the CEO of Blockware Solutions believes the event will also impact the demand side of the Bitcoin market.
Analyzing Google Data
Google data today reports that interest in trying to find “Bitcoin Halving” inside the U.S. would soon exceed 100 points – the greatest popularity of the word. This could be even greater than when the last half occurred in July 2016. Google Trends does not present exact numbers but shows the relative popularity over time of a groundwork word.
This does not, however, necessarily mean this Bitcoin gains major momentum in terms of mass acceptance. In line with Quantum Economics analyst Pedro Febrero, those who are already on the market understand most of Google’s search requests.
He admitted that after peaking in June 2019, searches for “Bitcoin” have dropped over the last 12 months.
Halving appears to scare some. As a consequence, with the value of bitcoin already down and miners experiencing low-end incentives, many wonder whether next month’s occurrence will theoretically cause the currency to be ignored or make its mining arena obsolete. Moreover, the halving of bitcoin is followed by two additional halves: one for bitcoin cash (BCH) and one for bitcoin SV (BSV).
Danny Scott, on the other hand, the chief executive of the crypto exchange Coin Corner inside the U.K. Isle of Man, commented that he believes the halving could theoretically give BTC the boost it will permanently set out from this COVID-related slump. He assumes that once the event is over the currency might comfortably hit its all-time high of $20 K once again.