As the Bitcoin block rewards are halved in 2020, their impact on the currency price is becoming more and more obvious. Bitcoin supporters continue to discuss this hot spot this week.
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Reduced by $63 million per week
On October 18th, a discussion was held on Twitter. Some commentators pointed out that at current prices, the halving of next year will reduce the value of new circulating Bitcoins by $63 million per week.
Block reward refers to the amount of new Bitcoin obtained by mining a new block. Currently, the reward for each block is 12.5 BTC, and the reward will be reduced to 6.25 BTC after halving.
The halving of block rewards in history has led to an increase in bitcoin prices, so it is thought that the halving in 2020 will not be different. Other studies, especially the stock-to-flow model, confirm the theory that bitcoin prices will soar as mining returns decline.
By comparing historical data, Crypto Rand, an encryption analysis company, noted that the halving of 2012 and 2016 reduced the weekly issue value of Bitcoin by $302,400 and $8.91 million, respectively. Analysts predict that the "most compelling" halving in 2020 will reduce the issue of Bitcoin by $63 million per week.
Investor Alistair Milne basically agrees with this view and adds that at the current price of $8,200, the value of the weekly new issue of Bitcoin will be reduced by $51.7 million. He concluded on Monday:
“Some people think that Bitcoin’s inflation schedule will not have such a significant impact on the price of the currency over time. But please take a look, according to the current value of about $8,200, the 2020 halving will be The mining incentives are reduced by approximately $51.7 million per week, which greatly reduces market selling pressure."
Prices have risen expectations
As reported by Cointelegraph, Bitcoin has fallen to $8,200, which is in full compliance with the expectations of the stock flow model. Previously, when the price was high, it actually ran ahead of the historically accurate measure.
Despite this, people's views on this positive outlook are not consistent. In an interview earlier this month, mining giant Bitmain co-founder Jihan Wu warned that halving would not necessarily lead to a return to bullish sentiment.
He said, “There are a lot of uncertainties in this, but now is a good time to invest in cryptocurrency mining.” Bitland revealed in a press release on Monday that the company plans to operate globally in Texas. The largest bitcoin mine.