Opinion: Reducing rewards in blockchain bitcoin could be the next catalyst for growth

Opinion: Reducing rewards in blockchain bitcoin could be the next catalyst for growth

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Graphs of the bitcoin course relative to the first two drops of the reward for its production or “halvings” demonstrate that the cost of the first cryptocurrency in each segment has repeatedly increased, Bitcoinist reports referring to the observations of the channel’s What’s On Crypto.

During the first halving, which was held on November 28, 2012, BTC was trading at $12. During the second on July 9, 2016, it was already worth 657 dollars. During the third halving, which should take place in mid-2020 or 642 days, the reward for the mining block will drop from 12.5 to 6.25 bitcoins, and What’s On Crypto predicts that by 2023 the bitcoin rate will rise to a whopping $10 million.

The forecast for What’s On Crypto is based on the so-called “halving line”, which shows that between the first and second reductions in the award, the rate grew by 200% per year.

“A few months before the two previous halvings, the bitcoin course was confidently going up, and after a decrease in compensation, it jumped even higher,”

said Garryk Hileman, head of research at Blockchain. Up to the third halving is still two years, but already now the hash-rate indicators continue to beat all previous records.

Because of halving, bitcoin mining could become less attractive, since the reward for creating blocks is reduced by half, but in reality the hashrate is practically not affected.

“I do not think that halving will seriously affect the overall hashrate of mining, at least not in the short term,” Hileman said.

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