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Bitcoin bulls are getting ready for the next halving

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Bitcoin bulls are already listening for the next halving, which will catalyze the further rise in digital assets.

This event is called "halving" among the crypto society, which happens a few years. The coins that are distributed as a miners' prize are split in two to prevent the impact of inflation that reduces the value of digital assets. The next such event is expected in May 2020.

That's what the bulls are preparing for the next Bitcoin rally. This effectively reduces the rewards from the blocks themselves, which miners receive in the mining process, using powerful computer algorithms to obtain Bitcoin. With the reduction in the award, the demand and supply laws are also applied directly. Demand will increase with an ever decreasing amount, which suggests an increase in the value of 1 Bitcoin.

Crypto evangelists, as co-founder of Morgan Creek Digital, Anthony Pompliano, are increasingly excited about the approaching moment, even though there is a year behind.

Not everyone, however, shares his enthusiasm. The number of skeptics is increasing, saying that the link between the bullshit and the half-effect is exaggerated.

This time, however, is different. Many mainstream investors and hedge funds already own Bitcoin. Price also finds support for the various derivatives that are born linked to the digital currency.

The person who created the Bitcoin system under the nickname Satoshi Nakamoto has limited the total to 21 million coins. The Halving event reduces the available quantity by up to 50%, and in theory makes existing tows more valuable over time until the last horse was dug somewhere in 2140.

The first "split" has reduced the effect of inflation from 40% to 20%. The second of 20% to 10%. The next is expected to reduce it from 3.8% to 1.9%. Every each next halving becomes less significant in this case.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.


 Jr Trader Martin Nikolov

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