Just as cryptocurrency enthusiasts are interested in the impact of Bitcoin’s “halving” later this year, it seems others are joining the debate, according tomedia. Each of them is expected to have the question of whether the price of Bitcoin will reach new heights in 2020.
Arcane Research points out that searches linked to Bitcoin have surged this month, as bitcoin will be “halved” for the third time on May 20, 2020.
This means that new bitcoins will be generated 50% faster than in previous years. Bitcoin is designed as a deflationary coin, limited to 21 million, and the last one will be mined in 2140.
Historically, the “half” event has pushed up the price of bitcoin by an order of magnitude, while also reducing the compensation of miners who solve trading hurdles. The current block bonus is 12.5 BTC, which occurs every 10 minutes, but in May it will drop to 6.25 BTC.
If history repeats itself, bitcoin could be worth more than the crazy peak of nearly $20,000 in 2017, and could be as high as $90,000 if you’re willing to trust some avid German bankers. While this may make some people sound incredible, it’s worth noting that some people bought virtual currencies for just a few pence when they first appeared, and they didn’t fully believe that the gas would become worthiting over time.
On the one hand, as Kraken CEO Jesse Powell and others argue, bitcoin is still undervalued even if it reaches $100,000. Given the sudden rise in public awareness, it’s not hard to imagine that if Bitcoin surges overnight, they’ll be scrambling to buy in the hope of reaping the benefits.
On the other hand, there are sceptics that halving bitcoin may have been reflected in the price, in which case it would be no good to put all your life savings into the cryptocurrency.
However, there are plenty of signs that newly mined bitcoins are likely to be sucked away by Square’s Bitcoin buying services and Grayscale’s Bitcoin trust. Coupled with about 30 million Coinbase customers and users of trading apps such as eToro and Robin Hood, you’ll learn that there are so many variables that affect the value of Bitcoin.
Now, companies such as Starbucks and AT?amp;T are slowly incorporating bitcoin into their payment systems, while others, such as Apple, may never integrate bitcoin into their services. Some may soon give up on the deal because it’s too slow and not energy-efficient at all, but solutions backed by executives such as Jack Dorsey, Twitter’s chief executive, will address the issue in the near future. When that happens, the value of Bitcoin is likely to rise because it has the potential to provide cheap financial services to the 1.2 billion people in places like Africa who cannot rely on the banking system.
But governments don’t like highly volatile and speculative assets like Bitcoin, but they are more willing to accept “stable assets” linked to currencies. After halving in 2020, much of the previous mining effort will have to shift to wider adoption, so at least the chances of seeing the price of bitcoin fall are low.
In any case, more companies are expected to follow in Facebook’s footsteps in launching their own cryptocurrencies. It is well known that the price of Bitcoin will soar as soon as it is announced. If anything, cryptocurrencies could become mainstream in 2020 and governments will start taking them more seriously.