Are we to expect a bullish Bitcoin 2020 season? This is a billion-dollar question that only time will tell.
As it stands, some price predictions tend towards an inevitable price peak. After all, it once happened.
Remember the historical price peak of December 2017? We all saw how the Bitcoin price skyrocket to as high as $19,891!
Many Bitcoin investors still had to pinch themselves out of that euphoria.
Thus, we can’t completely rule out another possibility any time soon, can we? But in reality, nobody can predict the exact price before the end of 2020. The Cryptocurrency market is too volatile for that.
Still, one of the talking points that could influence bitcoin price significantly is the halving event coming up in 2020.
Bitcoin halving could affect bitcoin prediction in 2020
The next bitcoin halving is most likely to commence in the second quarter of 2020, around May. So, will bitcoin price skyrocket after the halving as it did in the past episodes?
First thing first, what does ‘bitcoin halving’ mean? And how does it affect bitcoin’s price?
The meaning of ‘bitcoin halving.’
Whenever a bitcoin halving event occurs, there’s a cut into half in the network’s issuance rate. This means that Bitcoin miners will receive half as much BTC (known as ‘block rewards’) than in the previous halving event, for validating a transaction.
Still not clear? Here’s a more explicit explanation: we all know that the central banks control the printing and supply of fiats. And they do so at will without limit, which is why it is an inflationary asset.
Bitcoin is not like that. It is a deflationary asset. That means that algorithmically, there is a limit to how many bitcoins can be in circulation. According to the bitcoin system algorithm, only 21 million coins could be in existence.
Then Comes The Bitcoin ‘Block’ Rewards…
A pool of people known as bitcoin miners work hard to solve all bitcoin transactions and help keep the system secure. For their efforts, they get rewarded for each bitcoin ‘block’ solved.
Traditionally, the halving event occurs every four years. The genesis event took place in 2012, with 50 BTC reward for each validated block. That means for every 10 minutes a miner solves a block, he gets 50 BTC.
That is definitely a whole lot of bitcoins going by its current value. But, remember, Bitcoin price was worth just a few pennies back then.
In fact, a couple of years before the first halving, someone once bought two pizzas with 10,000 bitcoins at the worth of $30. I bet neither the seller or buyer probably saw bitcoin worth thousands of dollars in the future.
So, back to it; halvings has only occurred twice in Bitcoin’s history.
The second event took place in 2016 with the block reward ‘halved’ to 25 BTC. The next and third of its kind is scheduled for May 2020. This time, the ‘block’ reward is again halved to 12.5 BTC reward.
This in-built deflationary act reduces or regulates the amount of Bitcoin entering into circulation.
You can see the comprehensive schedule of bitcoin halving events in the table below;
|Halving event||Date||Block number||Block rewards|
|Bitcoin launches||January 2009||Genesis block||50 BTC|
|First halving||November 2012||210,000||25 BTC|
|Second halving||July 2016||420,000||12.5 BTC|
|Third halving||May 2020||630,000||6.25 BTC|
|Fourth halving||2024||740,000||3. 125 BTC|
|Fifth halving||2028||850,000||1.5625 BTC|
What’s The Effect of Halving on Bitcoin Prediction 2020?
For most of the miners, selling almost instantly is the best option. This will, in turn, increase bitcoin’s asking price.
Besides, the most common theory suggests that less bitcoin being generated will increase its scarcity. And the more the scarcity, the higher the price.
Talking on the next halving on CNN, Bitcoin Suisse CEO, Arthur Vayloyan reflects on how the previous halvings affected bitcoin’s value. He also gave his opinion on what to expect after the 2020 halving. He said:
“2020 is one of those years where the halving takes place, roughly mid of May. And when you look back and make history as a little bit of a prediction, or at least an idea of what could happen, it so happens that price movements were actually quite positive in those years. Or in the year that followed.” (source) (source)
Bitcoin Prediction 2020 According to Experts
Going by how the previous halving has affected bitcoin price, we can conclude that the halving event is a crucial part of the system’s predictable monetary policy.
How else could I put this? It just makes sense to expect that something bullish is around the corner. Some experts, too, believed so. Let’s consider what some experts are saying;
#1 – John McAfee
The first Bitcoin 2020 prediction I’d like to talk about is from John McAfee.
McAfee, the owner of the popular antivirus software, predicted in July 2017 on his twitter account that Bitcoin price would hit $500,000. He later went on to predict bitcoin’s value to hit $1,000,000 per coin.
Some have found McAfee’s prediction to be way out of the line. Honestly, I really think so too.
That’s not surprising, though. McAfee is a staunch bitcoin believer who comes up with different price speculations now and then.
Three years later, John came back to eat his words! He admitted that his prediction was but a ruse.
Despite McAfee’s bizarre speculation, we still can’t rule the possibility of massive Bitcoin profit for investors before the end of 2020.
#2 – Alex Mashinsky
Another expert’s prediction is Alex Mashinsky. The CEO of Celsius Network believed that the upcoming halving and the global geopolitical uncertainties would significantly impact Bitcoin’s price.
Making his prediction on Massari cryptocurrency podcast, Alex said: “I think that Bitcoin ends the year with a new high. I estimated $30,000, but it’s going to be somewhere between $20,000 and $30,000”. (source) (source)
#3 – Antoni Trenchev
Antoni Trenchev, the Nexo co-founder, spoke with Bloomberg’s Matt Miller that Bitcoin could rise to $50,000 by the end of 2020. (source)
“I think that, very easily, we could see Bitcoin going up to $50,000 by the end of this year,” Trenchev believed.
Let’s round up our verdict on bitcoin 2020 prediction, shall we?
Despite bitcoin’s fluctuating value over the years, one thing is almost certain; Bitcoin price will climb up as per predictions.
The fall in bitcoin price was due to some apparent factors – illegal usage, hacking, and other mishaps. Still, the pros far outweigh the cons.
As of the time of this writing, bitcoin price hits $10,133 against $7,969 a month ago. I don’t need a crystal ball to predict a possible $20,000 per bitcoin before the end of 2020.
Before then, we’d just keep our fingers crossed for the new Bitcoin 2020 bullish season!