Analyst estimates BTC cut in half could push price up to $ 55,000


The next halving of Bitcoin 2020 could be the event that will push the coin to new heights. In fact, some experts believe that halving could raise the price to more than $ 50,000. For those who do not know, halving could halve BTC's massive mining rewards.

After the rollercoaster experience of 2017 and 2018, many experts and analysts rushed to predict what would trigger the next bull market backed.

A cryptocurrency analyst, PlanB, said the Bitcoin block reward event had a lot of potential for bringing the price of bitcoin to levels such as $ 55,000. The researcher cited a scarcity assessment model and explained that he was modeling the future of Bitcoin through a stock-to-flow ratio.

On average, there are currently blocks every ten minutes, with a reward of 12.5 bitcoins. This means that every day, just under 2,000 new Bitcoins are released for $ 9 million to $ 5,000 per coin.

A halving is something that occurs every four years and cuts the reward in half, the last reduction being planned to reduce the reward from 12.5 to 6.25 BTC. This process has been globally integrated with Bitcoin to control inflation while creating a scarcity around the asset.

Reduction of reward

The valuation used in the PlanB forecast focused on the surface or outstanding stock of different assets relative to the new supply. However, according to the report, Bitcoin is a rare asset when looking at its inventory-to-cash ratio.

"The report revealed that Bitcoin currently has an SP of 25, which means it would take 25 years of production to reach the 17.5 million pieces of Bitcoin in circulation." Bitcoin offer being set at 21 million, there remains only 3.5 million BTCs to exploit.In 2022, Bitcoin's SF is expected to reach 50, a value much closer to gold. "

This places Bitcoin in the category of monetary property, alongside money and gold.

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