What will happen to the Bitcoin exchange rate after halving in 2020?

Bitcoin mining has become unprofitable due to the fall of the coin rate — the profit of farm owners exceeds the costs by only 6 percent, said in a March study by Fundstrat. And although analysts promise the growth of the first cryptocurrency in the coming months, in the future miners will face a new test. In may 2020, the amount of remuneration for the production of the unit will be reduced by half — from 12.5 to 6.25 BTC. Bitcoinist writes About possible price changes on the background of the event.

Bitcoin price rally may take place in 2021. This conclusion was made after the analysis: in previous times it happened in 2013 and in 2017. In both cases, the year before (in 2012 and 2016), the remuneration of miners was halved.

"If there is indeed a correlation between the reduction in the reward of miners and the price of Bitcoin, it is related to the impact of the first phenomenon on the hashrate and the stability of the coin. The question is not how the 50 percent decline will affect the price of the cryptocurrency, but what impact it will have on miners. Lower remuneration for the solved block directly affects the earnings of miners, especially with constant complexity."

However, analyst Garik Hileman believes that miners will not reduce production.

"Miners have historically demonstrated the ability to maintain production at the same level or even increase capacity. The reason is that they hope for further growth of the Bitcoin rate, which will cover all their costs."

I think that soon we will have another increase in prices. In the meantime, it's time to buy bitcoin cheap.