May 2020 is surely one of the most awaited months of the year, especially for the crypto world and also for the worldwide economy in general. It won’t be exaggerating to say that I am eagerly looking forward to the coming month as its gearing up to host another Bitcoin halving. For the record, it’s going to be the third BTC halving, after 2012 and 2016.
The event will be hosted on May 18, 2020, and will lead to halving of the existing Bitcoin reward from 12.5 to 6.5. So, what does the upcoming Bitcoin halving possibly have to offer? Would it lead to a rise in BTC price like the previous halving sessions?
Would the looming COVID-19 pandemic pose a threat to possibility of BTC price rise. Different speculations are in the air no doubt but still, if you ask me, I am positive about BTC price boost following the upcoming halving.
If we look back into the previous two BTC halving sessions, well, both of them have been huge turning points in the history of Bitcoin. The first halving took place in 2012 where the reward was halved from 20 to 25. The very next year, Bitcoin witnessed a dramatic 10x rise in price.
The second Bitcoin halving session was hosted in 2016 and the reward was further halved from 25 to 12.5. And we all know what happened next year (2017)- the coin took the world by storm by peaking to its ATH $20,000 in the final quarter of the year.
I am not denying the speculations that Bitcoin price might remain the same after the upcoming halving. It’s absolutely true that historical facts might not always define future course of actions. But on the other hand, I am also considering the mighty predictions made by economic stalwarts and BTC experts about BTC halving in recent times.
We have the example of the esteemed BayernLB Bank that has predicted a magical rise in BTC price ($90,000) this year. Then, we also have Bitpay CCO Mr. Singh, who among many, has estimated that BTC will cross its ATH this year after halving.
The argument in favor of price rise of BTC post halving goes back to the same law of supply and demand which led to price rise in the previous two halvings. Bitcoin supply is absolutely finite and is capped to 21 million coins only. With the upcoming halving session, the supply will be depleted further while the demand for BTC is on rise like never before. With reduced supply and increased demand, it will naturally and invariably lead to a solid boost in BTC price for sure.
We have been worried about the economy in generally due to worldwide lockdown of regular life in the wake of COVID-19 pandemic. But, on second thoughts, it might leave a positive impact on Bitcoin prices post halving. Many of us have a strong feeling that given seamless quantitative easing announced by the Fed, investors would bank on BTC as “inflation hedge coin” against the depreciating dollar.
With banks constantly cutting down on interests, BTC has emerged as the go-to safety asset for many. It will further escalate demand for the coin and eventually lead to a price rise.
We really don’t know what the upcoming halving actually has in store for us. But, if we consider the facts mentioned above, the May 2020 Bitcoin halving does instill hope.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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