Before the reductions of the award for the block remained two years - what will happen to the price of bitcoin?

Exactly two years later (on May 28, 2020, if extreme hashtrack fluctuations do not interfere), the reward for finding new blocks of bitcoin will decrease from 12.5 to 6.25 biticons. The Forbes columnist, Billy Bambrou, talks about whether this will affect the rate of the first crypto currency.

This event in the community is called halvening (halving - rewarding) for the block. Since the creation of bitcoin, halving has occurred twice. It happens every time after there are 210,000 units.

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About a year after the first halving in November 2012 (the initial award for a block of 50 bitcoins dropped to 25), the price of the main crypto currency reached its record high at that time, exceeding $ 1000. Second halvening fell on July 9, 2016, that is, occurred long before the crazy last year's records.

It is widely believed that halving does not directly influence the growth of the exchange rate and can not be considered an important factor in price movement: the market knows that the offer will be reduced at a certain time, and gradually begins to apply this decline to the price, avoiding sudden jumps and dips.

The rise in prices due to halving is to some extent explained by the actions of large buyers who can either buy bitcoins on the market or cannibalize them, and reducing the reward for the block inclines them in favor of buying.

For miners, halving means a significant reduction in revenues, so they will also be interested in increasing the price of each produced bitcoin. But as the reward for finding new blocks will fall, the miners will increasingly rely on the commission for confirmation of transactions.

When all the bitcoins are nominated, they will be able to count only on these commissions.

You can track the status of the upcoming third halving on this site.