The upcoming halving event in 2020 is for certain and could drastically affect the future of bitcoin. It could also be what helps to send Bitcoin back to its 2017 levels. Bitcoin’s meteoric rise into the mainstream has been well documented. Whispers that the market leader would continue to rise had been met with more incredulity as the market begins to acclimate to the constant changes of the cryptocurrency market slowly. Starting in May of this year, Bitcoin rocketed up past the 7k value. Today, the value of Bitcoin has continued to increase to over $10,000 (AU $14,480) and is still expected to move in an upward trajectory. While at its peak, at the end of 2017, Bitcoin had surged to an astounding $20,000 value. In an ever-changing market, it’s difficult to see where anything is heading, but there are come certainty into the picture.
If you aren’t familiar with it, the halving takes place every four years, that cuts in half the reward for adding a block to the blockchain. This is to keep Bitcoin’s inflation in check. To keep the value from tanking entirely, the amount that can be mined is finite, at 21 million, and the halving will help to regulate the supply to the increasing demand. The next event will take place around May of 2020. The current rate of 12.5 BTC will be reduced by 50% to 6.25 BTC.
Following the previous halving in 2016, the market seems to stay the same for the most part immediately following the event, with the peak value following a year later. It’s uncertain what the next halving will bring, but the general consensus is that one of two scenarios will happen: the first being that the value will rise, the second being that it’ll stay roughly the same. Many people believe that Bitcoin’s previous peak of $20k isn’t the highest of heights that it’ll reach, that the halving could spark another increase in value as anticipation rises.
The shifting mining atmosphere can also have some unforeseen consequences to the value of the world’s biggest cryptocurrency. As the profitability for Bitcoin mining decreases, it seems that the future of mining is shifting toward the bigger fish, who can afford to take on funding the resources needed to continue mining. If this trend continues, the currency will step away from the original community-created currency to a more corporate visage.
In its race to break records and bring this new currency into the mainstream, Bitcoin has helped to carve a path for other cryptocurrencies to make their mark on the market as well. As Bitcoin continues to increase in value, other currencies have also followed suit. Etherium has rallied and increased as Bitcoin’s value rises.
As 2019 moves Bitcoin ever closer to its next event, there’s no knowing what will happen. Bitcoin and other cryptocurrencies have been creating more support in these digital currencies and the question of whether digital currencies will become the replacement for fiat currency in the future. While speculation continues to insist that it could eclipse our paper bills, it’s still a ways off to before we know for sure.