According to many industry analysts, the Halving effect will raise the price of Bitcoin.
According to an article in The Cryptonomist, it describes what happened during the previous halving and that could happen.
In fact, in the past, bitcoin, after verifying the halving, has registered a new historical high.
There are less than a year at the moment and it seems that the price is going upwards, marking an increase of 90% compared to the previous year.
It will be the 3rd bitcoin Halving, the first occurred in 2012, the second in 2016.
What is bitcoin halving
As you know, halving is an update of the Bitcoin block where the extraction rate is halved.
It occurs every 210 thousand blocks, on average a block is created every 10 minutes, and should occur in 2020.
This data, however, depends on the hash rate, which if it increases then decreases the extraction time vice versa if it decreases then the extraction time increases.
Halving is important because it reduces the circulation of new bitcoins, in fact this is one of the causes of the probable price increase.
The next Halving will have to take place around block number 630 thousand, currently we can see here what block number we are.
The halving effect has will rise the price of bitcoin in the past
Already in the past, halving has shown its influence in the price of Bitcoin.
In fact, looking at the image above, we can see that every time the Halving occurred, the price went up.
Not only that, it has set a new historical max, with a considerable percentage increase.
Today, around 1800 bitcoins are minted which, after halving, we will have 900 bitcoins a day which will reduce cryptocurrency inflation.
What could happen
According to the experts, and looking at the historical data we can expect an increase in the current bitcoin price, which could even exceed its historical maximum of $ 20,000.00.
There are other factors to consider, such as adoption or news that could increase the interest of the cryptocurrency.
Certainly the Halving effect will raise the price of Bitcoin even if it does not exceed the historical max, but will always mark a considerable increase.
This is because inflation will be reduced.
We just have to wait patiently and enjoy the next wave of bitcoin rise.
