Project manager Jake Yocom-Piatt predicts that the upcoming reduction in the Bitcoin (BTC) mining reward will cause miners to push the price higher.”Since the halving of Bitcoin means that the miners only receive half as many Bitcoins for the same amount of work, this doubles the unchangeable high costs for the production of Bitcoin,” Yocom-Piatt said in an email from 1 May.
Bitcoin is nearing its third cut in half
About every four years there is such a halving at Bitcoin, because it was programmed exactly like this. Each halving halves the reward for mining Bitcoin blocks.Bitcoin has a maximum supply of 21 million coins. Not all of these coins are in circulation yet. Since its invention over a decade ago, Bitcoin’s circulation offering has grown steadily through mining rewards.A miner currently finds a block in the Bitcoin network somewhere in the world about every 10 minutes and receives a reward of 12.5 BTC for this. Essentially, this means that 12.5 new bitcoins are launched every 10 minutes.
Bitcoin exchange rate could double in the coming days
Due to this fundamental change in market dynamics, Yocom-Piatt expects a higher Bitcoin price. “In the short term, I expect the price to roughly double, but longer-term forecasts are difficult to make given the” boom and bust “pattern on cryptocurrency markets,” he said.