Will Bitcoin halving lead Miners to Sell for Double?

Will Bitcoin halving lead Miners to Sell for Double?

What is Bitcoin halving? Bitcoin halving means the rewards of mining new Bitcoin is cut in half and it occurs every 210,000 blocks. It is expected by Decred co-founder and project lead Jake Yocom-Piatt that the impending reduction in Bitcoin (BTC) mining payout will have miners upping prices.

From a mail we have come to know that to maintain the same profit margins, miners are incentivized to double the price at which they sell their Bitcoin. It is assumed that they will move offers from miners up substantially to lead the Bitcoin price up.

Third Halving at knocking

Halving is an event cutting mining block reward in half and the event takes place once every four year. Bitcoin showed that its circulation supply grow consistently through mining rewards. Bitcoin has a maximum supply of 21 million coins. As the Bitcoin network depends heavily on miners to release new Bitcoins into existence, they are incentivized with block rewards. As block rewards continue to diminish, so do miner’s rewards.

A miner from around the world finds a block on Bitcoin’s network every ten minutes. After they found it, they receive a reward of 12.5 BTC meaning that amount of Bitcoin hit the market every 10 minutes.

Bitcoin’s Price can be doubled

There is a possibility of higher prices for Bitcoin because of fundamental market dynamic shift. The departure of the Bitcoin market in the long run is so uncertain but in short term it is expected that the price of Bitcoin will double. There is an expectation about longer term prices of Bitcoin because a result of the halving is leading the stock-flow-ratio to increase.

Spread the love

Leave a Comment

Your email address will not be published. Required fields are marked *