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Halving is one of the most anticipated events among crypto enthusiasts in 2020. Many analysts expect a significant increase in the cost of Bitcoin - only in this case, the profitability of mining will remain. But some experts are not so optimistic: they believe that halving will not significantly change the current price of the coin, or even lead to a drop in value.


What is halving?
Halving is a reduction of the reward for each block produced by 2 times, which occurs once for 210,000 blocks. It is expected that on may 12-13, 630,000 blocks will be mined and the reward will decrease from 12.5 BTC to 6.25 BTC. This is the third halving: previously, remuneration decreased in 2012 and 2016.
Halving acts as a tool for regulating inflation: 2 times less new coins are put into circulation, and a shortage of cryptocurrency is formed on the market. Demand increases, and the cost of coins increases - this is an optimistic scenario that could be observed after the previous halvings.
The decrease in remuneration strongly affects the mining process. Once Bitcoin was successfully mined on conventional processors, but over time, the requirements for hardware have increased. To ensure good profitability in 2020, you need to use ASIC-miners. It is expected that the upcoming halving will make small mining farms unprofitable - more productive equipment will be required to make a profit.


History of halving
Since the beginning of the existence of Bitcoin, 50 coins were paid for each block, and miners were able to extract hundreds and thousands of Bitcoins. But then the cryptocurrency was worth a penny, and no one paid much attention to it. The situation changed dramatically after the first halving, when the price increased from$ 12 to $ 1100 during the year. Before halving 2016, one coin cost about $ 600 - a year later the price was already more than $ 2500, and a year and a half later-almost $ 20,000.

Of course, the value of the cryptocurrency was constantly adjusted - there were cases when within a few days the cryptocurrency could lose half of its price. But such jumps did not affect those who consider Bitcoin as a long-term investment, since the price only increased over time.


Bitcoin price forecasts in 2020
Experts ' opinions on the upcoming halving vary. For example, a well-known analyst of the Bitcoinist portal is convinced that the price of cryptocurrency will reach a historical high this year. It relies on the fact that the cryptocurrency will behave in the same way as in the post-halving years of 2012 and 2016.


Nick Carter, partner at Castle Island Ventures and co-founder of Coinmetrics, believes that halving will have virtually no effect on the price of coins. His forecast is based on the fact that miners are only a small part of the cryptocurrency market: this year, the issue of Bitcoin accounts for only 3.6% of the total number of coins. Of course, the price is likely to increase within a year and a half, but he does not expect a significant jump in the price.


Morgan Creek Digital co-founder Jason Williams believes that halving will not have a strong impact on the price of Bitcoin in the first few months. He is sure that the growth of Bitcoin will begin only 6-10 months after halving. In the long term, it expects a new historical high.


Among analysts, there are those who are set for a seemingly improbable scenario. For example, Fran Streiner believes that by the end of 2020, Bitcoin may be worth more than $ 200,000. In support of his forecast, he refers to the inversely proportional relationship between supply and demand for cryptocurrency: Bitcoin is used by more and more people, new blockchain applications and services are constantly being created, and the number of coins entering circulation is decreasing.


Conclusions
The decrease in the reward for Bitcoin mining is an important event in the cryptocurrency market, and it is very difficult to predict its consequences. You should not panic for sure - the previous halvings provoked a rapid growth of the digital currency, perhaps it will be the same in 2020. With a high probability, we will not see significant changes in the first few months - the growth of the cryptocurrency is expected in the second half of 2020 or

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