Early Bitcoin and Litecoin miner claimed that Bitcoin’s third block reward halving process would create new millionaires. Bitcoin (BTC) block reward halving is about 5 days left. According to Onfo Founder J.R.Forsyth, who commented on the process, the number of Bitcoin millionaires will increase after the Bitcoin halving process. The news, published on Forbes on April 27, included comments from various experts on the Bitcoin halving process. While the article includes predictions that the supply, which will decrease with the block reward halving, may have a positive effect on the price of Bitcoin, Onfo founder J.R.Forsyth made the most striking comment in this field. Forsyth said that after the Bitcoin halving process, the number of Bitcoin millionaires will increase.
What is Bitcoin halving? When is the Bitcoin halving?
The process of halving the BTC reward given to miners every 210,000 blocks created on the Bitcoin blockchain network is called Bitcoin halving or Bitcoin block reward halving. The third of the Bitcoin halving transaction is expected to take place on May 12, 2020, around 14:50 CET. About one week before the bitcoin halving, the amount paid to the miners per block is 12.5 BTC, after the third Bitcoin halving transaction, the block reward will drop to 6.25 BTC.
How will the BTC price be affected by the Bitcoin Halving?
Since the supply amount will decrease with the Bitcoin block reward halving, the number of people waiting for the prices to increase is not high, but there are not those who expect a decrease.
Those who remind that the supply will decrease with the Bitcoin halving process and expect prices to increase in this context, base their theses on the basis of the theory of economics. According to this;
Demand stays the same and prices increase if Bitcoin supply drops
If demand increases as supply falls (new users start buying BTC as a result of popularity) Bitcoin price rises significantly
Considering the previous two Bitcoin half processes, the increase in BTC price is remarkable.
In the first Bitcoin halving on November 28, 2012, the BTC price increased from $ 11 to $ 1,000.
Following the second Bitcoin block prize split on July 9, 2016, the BTC / USD parity, which was around $ 700, reached up to $ 20,000.
Many experts have expressed their opinions about the third Bitcoin halving process. Billionaire investor TimDraper said that Bitcoin, which will also be powered by the financial crisis caused by the Corona virus (COVID-19) outbreak, will jump up to $ 250,000 after the halving process. Silk Road founder Ross Ulbricht, who shared a blog post from prison, suggested that Bitcoin could reach up to $ 333 million.
There are also those who expect a fall after Bitcoin halving
Commenting on the price of Bitcoin, expert investor Selcoin warned his followers that they should be ready for bad news, saying that the Bitcoin block reward halving process might decrease.