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Bitcoin price forecast in the world after halving by 2023

Bitcoin price forecast in the world after halving by 2023

Every 210 000 blocks (approximately every four years), the miners’ reward for the mined block in the Bitcoin network is halved, and new coins begin to appear two times slower.

This process of reward reduction is called Halving and will take place until the maximum volume of 21 million bitcoins has been generated by the net (according to preliminary estimates, it will happen in 2140), The next bitcoin halving date is on May 21-24, 2020, Here is our view on what will happen with Bitcoin price after the next halving.

Bitcoin Halving 2020 Explained
bitcoin halving chart.

Halving is embedded in the source code and performs several functions.

1. Limits the coins issue, providing uniform issue, The lower the reward for every block, the longer the coins are mined, After halving the amount of mined bitcoins will decrease.

Nowadays, 1800 are mined daily, and after May 2020, this number will be reduced to 900 BTC, Halving slows the production of new bitcoins and pushes the date of creation of the latter.

2. Restrains crypto-inflation. The longer coins are mined, the more time it will take for all bitcoins to be engaged into circulation, Over time, new coins will become scarce, The slower new coins are mined, the lower is inflation.

3. Contributes to the rise of the bitcoin price (deflation), Since the supply in the market is reduced, then demand and rate are a rising.

4. Maintains the miners’ interest because of commission fees increase, and impossibility to get all the coins at a once.

Halving the reward by half affects the number of miners who receive bitcoins for mining bitcoin blocks, Historically it has had a positive impact on the price of the leading cryptocurrency in the long term, Halving is developed to prevent coin inflation, Unlike central banks. 

Printing cash at their discretion, the number of bitcoins is limited, Thereby, cryptocurrency becomes more scarce and valuable and even becomes more like a gold than a “freely printable” national fiat currency.

Previously, the reward per block was 50 bitcoins, and bitcoin price was less a dollar, However, the two previous halvings reduced the reward twice, and now it amounts to 12.5 bitcoins per block, In 2023, the award will drop to 6.25 bitcoins (about $80,000).

Each halving is a reminder that the reserves are running out, Every halving limits the number of new bitcoins being created, making existing coins more valuable.