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The next Bitcoin block reward halving event could prove to be a watershed moment for its price, according to data currently circulating around social media.
$10 Million By 2023?
A summary of Bitcoinâs price at the first two block halvings uploaded to Reddit by Telegram news channel Whatâs On Crypto notes that Bitcoin prices increased by orders of magnitude in each period.
At the first halving on November 28, 2012, BTC/USD traded around $12. By the second, on July 9, 2016, it was $657. The third halving â due in mid-2020 or in 644 days â will see the block reward reduce from 12.5 BTC to 6.25 BTC, while Whatâs On Crypto suggests ongoing trends could see prices hit a giant $10 million by 2023.
The forecast came using a so-called âhalving line,â which demonstrates that between the first and second halvings, prices increased bilaterally â 200 percent per year or 3 times year on year.
âPrice Follows Hashrateâ
Bitcoin users who had coins during the second halving will remember that contrary to expectations, the event had little impact on prices or market activity.
âIn the months leading up to the last two halving events, we saw bitcoinâs price steadily trend upward, and then power higher following the reward halving,â Bitcoinist reported Blockchain research head Garrick Hileman as saying in May this year. Two years off the 2020 event, Hilemanâs comments came as Bitcoinâs network hashrate continued breaking all-time highs.
Halvings can make mining Bitcoin less attractive due to a reduction in block reward size, yet hashrate rarely suffers as a result due to difficulty adjustments. âI do not anticipate a significant change in the total mining hash rate due to the halving, at least not in the short run,â Hileman added.
Price follows hashrate and hashrate chart continues its 9 yr bull market. #Bitcoin pic.twitter.com/Rh49V9gaJw
â Max Keiser (@maxkeiser) August 8, 2018
The hashrate tendencies have not gone unnoticed either, with RT host Max Keiser repeating his belief that âprice follows hashrateâ earlier in August â suggesting an uptick should be imminent.Â
What do you think about the Bitcoin halving predictions? Let us know in the comments below!Â
Images courtesy of Shutterstock, Twitter.
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