Although the Bitcoin half-life is still 471 days away, it has recently become an important issue in the sector. This milestone is worrisome among miners, as the limited supply decreases as the total block reduces the prize. However, according to the latest articles published, this event shows that Bitcoin itself is developing. According to experts after the Halving event, Bitcoin will be less inflationary and the value of crypto money will increase.
What will happen to Bitcoin with Halvingle?
According to a counter at https://www.bitcoinblockhalf.com/, the Bitcoin halving event will take place on May 24th of 2020 and according to this, there are 471 days left to the halving. More than 83% of the original 17.5 million Bitcoins in circulation were removed, and the algorithm automatically reduced the block rewards after each 210,000 blocks were scraped off. At present, the block award stands at 12.5 BTC and will be reduced to 6.25 BTC with halving.
Now the daily 1.800 Bitcoin is created and the inflation rate is 3.82%. Halving will cause daily Bitcoin production to fall to 900, resulting in inflation down to 1.8%. The Federal Reserve targeted 2% inflation, but falling below this level (as Bitcoin would do) makes the US economy less inflationary.
Bitcoin tagged ”hard para para
With a low inflation rate, experts believe that people will be less likely to spend. Many websites have compared the inflation rate with the US economy over the last 100 years. The Bureau of Labor Statistics says that the value of the dollar has fallen and that prices have increased by 2.900% since 1860.
Bitcoin is labeled ası hard money asyon because it resembles the bottom of the deflationary monetary policy. Gold has also become a reserve asset for the world, which has a low inflation rate of commodities and a market value of $ 7 trillion.
Bitcoin can exceed ATH with halving event
There are a large number of analysts who consider the Bitcoin halving event as a catalyst for a bull race. As investors approach halving, they can start collecting more Bitcoins. The latest halving event took place in 2016, which was the year of the first year when BTC exceeded the US $ 1,000 value for the first time.
Perhaps the same thing will be the case for the next bull race. However, the sector has come a long way since Bitcoin has exceeded $ 1000. According to some analysts Bitoin may exceed the highest level of all-time (ATH) with the halving event.
Let us know about the latest developments twitterFollow us, like our Facebook page and join our Telegram channel!
The post 2020 How does magic behind Bitcoin Halving affect the price of Bitcoin? appeared first on Kriptokoin.com.