This analyst believes that BTC Halving could price $ 55,000

The upcoming Bitcoin 2020 halving could allegedly be the event that pushes the coin to new heights. In fact, some experts believe that halves can push the price up over $ 50,000. Only for those who do not know, halves can halve the BTC mining block rewards.

After the runway experience that was 2017 and 2018, many experts and analysts have played to predict what will trigger the next sustained bull market.

A cryptocurrency analyst, PlanB, has said that the Bitcoin block reward event has a lot of potential to bring the price of Bitcoin up to levels like $ 55,000. The researcher cited a sharpness value model and explained that he modeled the future of Bitcoin through a stock-to-flow relationship.

On average, blockages have been found every ten minutes with a 1[ads1]2.5 Bitcoin reward. So that means every day just under 2,000 new Bitcoins are put into circulation worth $ 9 million at $ 5,000 per coin.

A halving is something that happens every four years and reduces the reward half, with the last half halved planned to reduce the reward from 12.5 BTC to 6.25 BTC. This process was globally built into Bitcoin to keep inflation in control while creating scarcity around the asset.

Reward Reduction

The valuation used in PlanB's prediction looked at the above or in circulation, inventory of various assets in relation to new supply. According to the report, Bitcoin is a rare asset when looking at the stock-to-flow ratio.

"The report found that Bitcoin currently has an SF of 25, which means that it will take 25 years of production to reach Bitcoin's current circulating supply of 17.5 million coins. But since the bitcoin supply is set at 21 million , there are only 3.5 million BTC left to be recovered. In the year 2022, SF of Bitcoin is expected to reach 50-a-value much closer to gold. "

This puts Bitcoin in the category of money products, along with silver and gold .

Source link

Back to top button