Halving is nothing more than the pre-programmed inflation control mechanism designed to create more scarcity. Assets that are scarce more often than not are more valuable than those that are available in abundance.
Suchis the case with Bitcoin. Once the mining rewards are halved, it is natural that the supply of this asset on exchanges is going to be lower. On the other hand, the interest in BTC trading and investing is projected to grow. Even more so because the new markets, like recently launched Bakkt BTC futures, are raising the attention of BTC as an investment. Of course, according to the laws of the market, where the supply is limited and the demand rises, the prices rise along with the demand.
Bitcoin operates on a model of deflation. This means less Bitcoins will be made over time and eventually the supply will stop.
The supply will end when the last Bitcoin is mined in the year 2140. Bitcoins supply is limited to 21 million units by it’s built in algorithm, no more than that amount can ever exist.
This is different to fiat currencies which use an inflationary model. Inflation is a model where central banks can print extra units of currency at will.
What happened the last time bitcoin halved?
Bitcoin rewards last fell on 9 July 2016 at the point of the second halving – an event which saw the block reward fall from 25 new bitcoin per block to 12.5 bitcoin. Bitcoin’s price surged from $576 on 9 June 2016 (a month before the halving) to $650 at the time of the event itself. Despite significant volatility, prices continued to rise over the course of the next year to reach $2526 on 9 July 2017.
A similar pattern emerged surrounding the first halving on 28 November 2012 when the bitcoin block reward dropped from 50 to 25 new bitcoins. Prices increased from $11 a month before the halving to $12 on the day of the event itself, continuing to rise over the course of the next year to reach $1038 on 28 November 2013.
The price below are the most important prevision for the bitcoin's next value
Forbes - Bitcoin Price Prediction 2020: $91.000
Digital Asset Research Bitcoin price prediction 2020: $60,000
PlanB (Medium) - Bitcoin Price Prediction 2020: $55.000
Josh Rager (Twitter) - Bitcoin Price Prediction 2020: $150.000
IHODL - Bitcoin Price Prediction 2020: $100.000
BeinCrypto - Bitcoin Price Prediction 2020: $144.000
