Tone Vays: “70% of bitcoin (BTC) miners stops after halving”

Tone Vays: "70% of bitcoin (BTC) miners stops after halving"

Mark Yusko, Morgan Creek: "Bitcoin will cost $ 50,000- $ 100,000 by 2021"

The next bitcoin (BTC) halving will take place in 2020 . This is a mechanism that has been built into the Bitcoin protocol to prevent inflation. This mechanism ensures that the rewards for miners will be halved. However, it is not exactly clear what the result will be.

According to Tone Vays, a well-known analyst, there is a chance that a large part of the miners will stop as their income will be halved. If the value of bitcoin drops, it is no longer profitable for many miners to mine bitcoin. Now a miner still receives 12.5 BTC, so after the halving it will only be 6.25 BTC. Vays wrote in a tweet :

From a technical point of view, anything is possible until the end of 2020, after which $ 5,000 is unlikely.
Sausage Case Scenario: prices drop to $ 5k before the halving, and after halving 70% of the miners quit due to low income, #Bitcoin price drops and then rises from the dead!

However, the precise effect remains unclear. When we look at the previous halving events, something stands out. After the halves of 2012 and 2016, the price rose considerably. This happened 12 months after the halving. For example, 12 months after the halving of 2016, bitcoin rose to its all-time high (ATH) of $ 20,000.

According to Garrick Hileman, co-founder of Mosaic, the bulls can indeed expect a nice uptrend as a result of the halving:

Cryptocurrency markets are often very influenced by events and as we get closer to the next halving, the price of Bitcoin will get a boost from those who anticipate the coming reduction in new offerings. In the months prior to the last two halves, we saw Bitcoin’s price rise steadily, and then power up after halving the reward.

The next halving is expected to take place in May 2020. Another large cryptocurrency that will soon be going through a halving is litecoin (LTC) . That cryptocurrency has seen strong increases in the past period , although it is not entirely clear whether that is only because of the halving because the rest of the cryptomarket is also doing pretty well.

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About Viktor Sokolov 88 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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