Every four years the reward that miners receive for their work is halved, this is called the bitcoin halving. The next halving is expected to take place in May 2020 and many analysts believe that this can have major consequences for the price. After all, fewer bitcoins are released on the market.
The American journalist Joe Kernen of CNBC said on live TV that bitcoin is worth $ 55,000 by halving.
Speech tube for bitcoin believers
He said this during a broadcast from Squawk Box, on the American channel CNBC. This program is increasingly becoming the mouthpiece for bitcoin maximists. Most of the guests are also very bullish when it comes to the bitcoin rate. Joe Kernen is the presenter of this program and he clearly has trouble staying objective when it comes to bitcoin.
Will bitcoin reach $ 55k by May 2020? @JoeSquawk discussions #btc with @StocktonKatie pic.twitter.com/r1b5rNhX1s
– Squawk Box (@SquawkCNBC) July 29, 2019
$ 55,000 is not a wild bet
During an interview with Katie Stockton, founder of Fairlead Strategies, he asked her if she agrees with his prediction that bitcoin is worth $ 55,000. Although Stockton did not bite at first, and even laughed at it, Kernen tried to convince her.
The prediction of Cores is based on a fundamental analysis of the scarcity of gold and silver, and how this should be reflected in the price of bitcoin. Stockton was not completely convinced even though Kernen was serious.
Halving can have consequences for the bitcoin price
The next bitcoin halving will take place in May 2020, and the reward for miners will then be 6.25 bitcoin per block found instead of the current 12.5 bitcoin. This is called a deflationary function, since bitcoin is becoming increasingly scarce. And almost every economist agrees that scarcity provides higher value. Kernen claims that this can be the crank for the next big move up, which means that bitcoin will eventually be worth around $ 55,000.
Suppose that bitcoin is worth $ 55,000, the halving may certainly have contributed to that. What also helps is that the American and European central banks are taking inflationary measures. They are buying more and more bonds, which means that more money is being pumped into the economy, and they are lowering interest rates, making it cheaper to borrow that new money.
The halving and the policies of the central banks can ensure a perfect storm for bitcoin.
Usually afterwards
Although the $ 55,000 forecast sounds tough, he’s not the only one who feels that way. Anyway, it seems like everyone expects the bitcoin halving to cause an upward movement. But if you look at the previous halves of bitcoin, you notice that the price only increased after the halving, and not before.
The halving of bitcoin is already receiving a lot of attention, but the halving of litecoin is starting early next week and in 2020 it will be Zcash’s turn. You can buy all this cryptocurrency with BLOX. The free and Dutch all-in-one app.
Do you want to know more about the litecoin halving for next week? Keep an eye on news.btcdirect.eu, this weekend we will publish a longread about the litecoin halving, and what that can mean for the race.
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