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On December 2017, bitcoin reached its pinnacle of 20,000. However, what should be noted that even prior to it it was making gains for almost two years and it also experienced an event called bitcoin halving, an event which usually changes the fortune of bitcoin for good.
Interestingly, it’s just a matter of two weeks before another bitcoin halving event comes knocking on the door. According to some, this would surpass all expectations and be a grand success and take the price of bitcoin beyond anything is ever seen before.
All the focus is on bitcoin and people are eager to see how it performs in 2020 especially after the bitcoin halving event. According to Danny Scott, CEO of CoinCorner, this could be the year bitcoin explodes beyond imagination.
However, the road to the buildup hasn’t been a smooth one as bitcoin received a battering from Covid-19 too especially in March where it lost 50% of its value. However, it has got right back up and is doing better than the traditional assets.
Bitcoin volatility is an issue in normal circumstances too, but what the onlookers are anticipating is the long term price impact of the bitcoin halving event. As soon as the 18,375,000 would be digitally mined in mid-may, a drastic change would follow. The mining rewards would be slashed in half, ergo adding more difficulty in mining the king coin.
Bitcoin Halving Event Would Pay Dividends, Patience is Key
The cut down in mining rewards may make profits very hard to come by and many miners, especially those who deal with high electricity cost, would be impacted severely and might leave the business. According to some analysts, this could lead to a slight dip in BTC price, before it ultimately rises again.
Similar views were held by Danny Scott who also believes that the bitcoin price would start to soar after 3-9 months of the bitcoin halving event if history is anything to go by.
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