- New Bitcoins being mined daily reduces while central banks are printing new money to support the global economy
- The recent Bitcoin halving reduces Bitcoin issuance and mining reward by 50 percent
- Bitcoin’s price would skyrocket to as high as $40k to $100k over the next two years
Bitcoin News Today – Central banks across the globe are minting new currencies to try to support the global economy amidst the coronavirus pandemic. However, for the world’s largest digital currency by market cap – Bitcoin (BTC) – the reverse is the case.
The recent halving, which is a highly anticipated event, has started slowing down the amount of new BTC being mined. This event takes place every four years, and it reduces the block mining reward on the network by 50 percent. This year’s Bitcoin halving took place on May 11, and it saw the reduction of mining reward from 12.5 to 6.25 BTC per block.
Bitcoin (BTC) Price Today – BTC / USD
| Name | Price | 24H % |
|---|---|---|
 | $0.00 | -0.15% |
The Amount of BTC Issued Reduces by 50 Percent
The price of the digital currency surged enormously over the past couple of weeks in anticipation of the halving event. Miners are now receiving 6.25 BTC for mining a block. Bitcoin has been around for 11 years and this is the third time it is undergoing a halvening event. The next event will take place somewhere in 2024, and it will reduce the block mining reward to 3.125 BTC per block.
This was how the Bitcoin network was designed; the events are part of the algorithm behind the coin. There are currently about 18.3 million BTC in circulation, and the total possible number to be mined is 21 million. This event would most likely boost the demand for the digital currency, as the rate of new BTCs will keep going down.
Traders and Investors Expect Bitcoin to Hit New All-time Highs
Many have been looking forward to this event. The anticipation around the halving grew exponentially, and this pushed the price of the digital currency from below $3,800 in March to more than $10k in May. Nevertheless, the price of the digital currency is now below the $9k mark, now that the halving event has taken place. Many investors and traders are now asking, “What is next for Bitcoin?”
Many experts expect the price of the digital currency to surge significantly higher. Some are even predicting that it would break over its all-time high of $20k. This is more likely to happen in the mid-term, as the demand for the digital currency may increase significantly. The increase in the demand would come as investors see it as safer than government-backed currencies due to the coronavirus pandemic.
The co-founder and CEO of BlockFi – Zac Prince said:
“Imagine if OPEC cut production in half overnight. What would happen to the price of oil? It would go up.”
He also gave a very bullish Bitcoin price prediction. He said that the price of the digital currency will surge over the $20k mark and skyrocket to as high as $40k to $100k over the next two years.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
