Will it Be A Disappointment or Will We See Some New Highs?
So Far, 2019 has been a pretty good year for Bitcoin. "Crypto Winter" as it was commonly called has seemingly ended. Bitcoin's price went from $3700 to $11,386 where it is currently trading. Altcoins seem to be in a bit of a squeeze and are not making any real gains in comparison to Bitcoin's rise. Bitcoin's price has remained relatively stable for the past 2 months, with many anticipating a price break-out.
Fortunately for some, there is an event on the horizon that might trigger a price explosion. Bitcoin's halving is expected to occur in 2020. Halving is an event that occurs every 4 years in Bitcoin. This means that miners will receive half the rewards for maintaining the blockchain. Bitcoin's block reward will drop from 12.5 to 6.25. Halving tends to lead to increased scarcity, which in-turn usually leads to a price increase. Several websites have been dedicated to a countdown.
Bitcoin's previous halving occurred on the 9th of July 2016. It led to a moderate price in Bitcoin in the short term, with Bitcoin's price increasing from roughly $550 to $650. Several months after Bitcoin's 2016 halving, its price reached an all-time-high of $20,000.
Litecoin, one of the oldest altcoins has also recently went through a halving. Unfortunately for Litecoin, its halving did not have a big impact on its price. Litecoin spiked temporarily and its price hit $102 before collapsing back below the $100 mark.
All altcoins are inevitably linked to Bitcoin's value in one way or another. Therefore, it completely plausible that Bitcoin's halving will have a greater impact on Litecoin's price than Litecoin's halving. Whether Bitcoin's 2020 halving will cause it to reach even higher all-time highs or not, is difficult to guess. It will likely have some impact on Bitcoin's price though.
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Written by Jonathan Ganor
Writer & cryptocurrency aficionado