Bitcoin block reward halved-this is a highly anticipated event. After the halving, the bitcoin reward generated for each new transaction block will be reduced from 12.5 BTC to 6.25 BTC-this halving is expected Will take place next month.
Bitcoin halving is conducted every 4 years to ensure the scarcity of Bitcoin. The total amount of Bitcoin is fixed at 21 million.
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The Block found several head cryptocurrency exchanges and learned their views on halving. Based on their answers, the halving will usher in new market participants.
Kraken COO Dave Ripley said:
"Historically, in the year and a half after the halving, we have seen a surge in prices, so we are likely to see new players in the market enter."
Paxful's co-founder and CEO Ray Youssef agrees with Ripley, saying:
"After the last two halvings, there has been an unprecedented surge in demand and prices. Of course, it is difficult to say whether the past model is applicable, (not sure if it will bring new users to the market)."
According to CoinMetrics data, the previous two halvings occurred in November 2012 and July 2016, respectively, and the bitcoin price rose by 8000% and 600% in one year.
(Bitcoin halved the price change)
Cryptocurrency exchange Gemini said:
"We expect more people to pay attention to bitcoin and recognize that this incident is in stark contrast with the quantitative easing policies supported by the Federal Reserve and other central banks."
Lennix Lai, director of financial markets at OKEx, said that halving Bitcoin can be understood as a “quantitative tightening” of cryptocurrencies.
"We expect that competition among miners will become more and more fierce. Although the most efficient miners will prevail, we believe that the demand for miner-oriented financial products will increase significantly, which will help miners manage Its price risk and expected cash outflow. "
Sunny Jain, product director of non-custodial cryptocurrency exchange KyberSwap, said that halving bitcoin may lead to an overall increase in demand for bitcoin, and the transaction volume of tokens linked to bitcoin, such as WrappedBTC, may increase.
Other exchanges said that if the new coronavirus epidemic continues to spread, the bitcoin halving may not happen. Bitstamp said that the halving event "may be overshadowed," but in the long run, it "certainly affects" the market.