Why Holding Onto Bitcoin Post Halving is Ideal

The stability in the price of bitcoin after the occurrence of bitcoin halving alarmed many investors and bitcoin buyers around the world, especially those that haven’t been following the bitcoin community and media.

Some bitcoin investors expressed their concerns over the price of bitcoin which has remained at the US$660 margin over the past few weeks. The same investors that believed the halving of bitcoin block reward would trigger a massive surge in demand for the currency and its price.

Bitcoin enthusiasts that have followed the bitcoin community for a substantial period of time understand and recognize that the bitcoin block reward halving has been anticipated for a few years and is not a new piece of information for the majority of bitcoin traders.

However, there still are quite a few investors that are overly concerned with the stable trend of the bitcoin price. For these investors, the most ideal advice is to continue holding onto bitcoin as it increases in value.

The completion of the bitcoin block reward halving resulted in a slight increase in the difficulty adjustment of the bitcoin network, which simply means that the difficulty of mining bitcoin has barely gone up after the halving occurred.

With the price securing a similar margin for nearly three weeks, it is obvious that the anticipated bitcoin block reward halving hasn’t had much effect on the price or the network itself.

The same pattern can be noticed during the time period in which bitcoin’s first bitcoin block reward halving occurred. On November 28, 2012, the bitcoin network experienced its first block reward halving. Leading up to the event, the price of bitcoin remained stable at a US$130 margin.

The price of bitcoin didn’t seem to surge until April, nearly 5 months later, when the price hit US$130, and continued to surge upto US$1,000, which quickly fell due to the Mt. Gox incident.

In summary, as it did in 2012, Bitcoin block reward halving cannot be perceived as an event that will immediately spike the price of bitcoin, but rather as a notable historical happening which will gradually contribute to the increasing value of bitcoin.

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The Halving just happened, We’re all still alive, and so is Bitcoin! The first 12.5 BTC block was mined by F2Pool (the largest mining operation in the world) at 17:46 (GMT). Bitcoin price and hashrate seem to be stable after a 5% price drop just half an hour before the Halving.

Bitcoin Price Halving

The speculation is over and any dramatic changes regarding the value of Bitcoin will probably happen within the coming months if they occur at all.
Bitcoin saw some volatility in the last few months, which was overall positive considering BTC rose from $420 to $630 in a period of 3 months, reaching the $789.78 (Data via Bitfinex) mark on the 16th of June.

So what does the future hold for the 12,5 block reward Bitcoin? Some worry the block reward reduction will cause a big portion of miners to abandon the industry, thus slowing the Bitcoin blockchain, which would in turn cause the price to drop and drive even more miners out of the business, in a downward avalanche that could end Bitcoin (a Death Spiral).

This would be the worst case scenario for Bitcoin, which is unlikely to happen to the first cryptocurrency with a market capitalization of $10.07 billion.

Innovation and development of mining hardware like the new Antminer S9 or the S7.

Many believe that new ASICs should balance the supply and demand scale, allowing the Bitcoin blockchain to remain healthy shaking the Death Spiral predictions the ground.

The new Antminer S9 has 14.5 TH/s hashing power. Supply is limited, however, and we should still see some volatility in the coming months, affecting all users and bitcoin-related companies.

Vlad Cealicu, CTO and co-founder of CryptoCompare said:

With the halving out of the way, we are expecting a lot of volatility in the Bitcoin price in the following week. Another interesting area to watch is bitcoin mining contracts and how the operators will cope with the reduced block reward.

One thing is sure, the halving already happened and nothing broke. We still don’t know who Satoshi Nakamoto is, but whoever he, she or they might be, they can rejoice in the fact that Bitcoin survived another halving and continues to prove itself over again.


Within one week, the Bitcoin network will undergo a major change. Bitcoin block reward halving is scheduled to happen on the 9th of this month. Once it happens, the mining rewards for discovering each new block by the miners will be reduced to 12.5 freshly minted bitcoins from the existing 25 bitcoins. This will effectively reduce the amount of new bitcoins introduced into circulation.

The creator(s) of Bitcoin have deliberately incorporated this feature to ensure the value of the digital currency doesn’t drop and to delay the time taken to mine all 21 million bitcoins. It will also promote competition among miners to gain the maximum share of the newly minted digital currency until bitcoin adoption reaches a critical threshold after which it will become self-sustainable. However, the drastic cut in the rewards also comes with own set of drawbacks.

What Does Halving Have in Store for the Bitcoin Price?

The Bitcoin community is already speculating the effects of halving on the value of bitcoin, mining activity, and other aspects of the digital currency ecosystem. The opinion of the community is divided about the pricing aspect, as some believe that the value of bitcoin will start to soar after halving, while others think the effect will be completely opposite.

One popular opinion going around in the media in the past couple of days leans towards the positive side, claiming that the bitcoin price will continue to increase after halving. According to this theory, halving will not be directly responsible for the fall in bitcoin prices or destabilization of the digital currency. But this theory doesn’t factor other external factors which may cause the bitcoin price to move either way following the network halving.

External market factors play an important role in the increase or decrease of bitcoin value. We have already seen few instances in the recent months, where the price fluctuations were influenced by the changes in the global economic system viz., the devaluation of yuan, Brexit and more. Even gold, the universally accepted, de-facto medium of value exchange has been showing trends similar to that of the digital currency,

On the other hand, the mining community may also see few miners quit bitcoin mining following the halving unless bitcoin’s price continues to maintain an upward trend. The ones calling it quits will be those still running older mining hardware, which are more energy intensive with reduced processing power, rendering them unable to recover the mining costs.

Bitcoin has been going strong for more than a month now. If the trend continues, then we can expect halving to have minimal impact on the network and pricing. Either way, we will start seeing the signs by next week.

Ref: T3N |Quartz | Image: Bitcoin Block Half


The Bitcoin network crossed another milestone earlier today. Thanks to the strong bitcoin trading in the past few weeks, the value of the digital currency has almost reached $600 mark. Simultaneously, keeping up with the increasing bitcoin price, the total market capitalization of the digital currency today crossed $9 billion.

Even though the increase in market capitalization beyond $9 billion was short-lived, it is a milestone to be celebrated nevertheless. The digital currency hit the landmark number when its price crossed $576.50 to reach a maximum of $590.13 resulting in a maximum market capitalization of around $9.217 billion. Since then the wave of price surge has declined to reach $569.3 (at the time of writing) at a market capitalization of under $9 billion.

bitcoin market capitalization

Bitcoin has been going strong since the past two weeks, where the value of digital currency increased from a stable price of around $450 to reach $569 with brief price hikes extending beyond the final value in between. The increased demand for bitcoin has been attributed to the activity in the Chinese market, where people are said to be investing in digital currency due to lack of other options. As the value of Chinese yuan declines, people are looking for investment options to prevent their earnings from losing value. Strict capital controls implemented by the government has prevented them in putting their money into other international investment vehicles.

btc market capitalization

In addition, people are more actively investing in the digital currency expecting its value to further increase next month as the Bitcoin network goes through halving. The halving will result in miner rewards for block discovery reduced by 50 percent, which will also mean that the rate of generation of new Bitcoin crypto tokens reduces effectively, which combined with constantly increasing usage will create more demand resulting in an increase in value. Making it more interesting is the favorable regulatory environment, as countries take a wait and watch approach towards the digital currency revolution, lest they hamper innovation by introducing strict regulatory measures.

Market capitalization to exceed $10 billion by the end of this year

At the current rate, we can expect Bitcoin to only strengthen its position in the cryptocurrency ecosystem with the market capitalization further increasing to reach the $10 billion mark. At the current rate, if there is no significant surge in price, we can expect bitcoin to break the $10 billion market capitalization by the end of this year at the price of $625 per bitcoin. However, it can come sooner if the price continues to exhibit a positive upward trend.

Ref: CoinMarketCap.com | Image: CoinMarketCap

The Bitcoin price will always remain a topic of significant debate, as there are those who feel the cryptocurrency is undervalued, whereas others predict stagnation or even a decline. Several Bitcoin experts weighed in with their thoughts recently, and there are some interesting responses, to say the least.

The Bitcoin Price Throughout 2016 and 2017

There have been some spectacular Bitcoin price predictions in the past, and even though the value per BTC has gone up significantly from 2010, there is still a lot of room for growth. At the same time, it is all but impossible to predict where the Bitcoin price will end up at, as there are so many different factors to take into account.

SpectroCoin CEO Vytautas Karalevicius stated:

“I assume increase in turnover of daily Bitcoin transactions in dollar terms to raise 10 times, to half a billion USD a day (highly optimistic scenario that Bitcoin will catch PayPal in one year), so if current correlation between Bitcoin price and turnover perceives hence Bitcoin would cost between $1,800 and $1,900, but this estimate is very roughly and ignores a range of other factors.”

Perhaps the most enthusiastic price point was indicated by ANX CEO Ken Lo, as he predicted a Bitcoin price of US$35,000 in the next twelve months. Keeping in mind how Bitcoin is struggling to reach the US$500 mark at the time of writing, such an exponential increase seems very unlikely. However, no one would mind seeing that price twelve months from now, though.

While other Bitcoin experts may not share Lo’s excitement, the majority of Bitcoin price predictions made is well above the US$1,000 mark. A lot of people seem to think the BTC price will explode in the coming months although there is no real indication of that happening. One thing that could have an effect on this outcome is the upcoming Bitcoin halving, which will take place in a few weeks from now.

Bitcoin Association of Ireland Founder Alan Donohoe was more down-to-earth:

“The fact that there will be no more than 21 Million Bitcoin in existence will make them more valuable. The government can print money indefinitely, with Bitcoin this is not the case, The limit of 21 million bitcoins is “hard-wired” into the protocol so as with any item as it becomes more scarce the value generally rises. I would guess in 12 months 1 Bitcoin will be trading about the €800 mark.”

Several of the Bitcoin experts are expecting another Bitcoin bubble this year, although it will hopefully be a more legitimate one. The previous Bitcoin price bubble was caused by the Mt. Gox exchange, which eventually shut down after stealing hundreds of thousands of Bitcoins from its users. Money attracts all kinds of people, and an explosive Bitcoin price growth may have a similar effect.

Source: Founder Grid

Header image courtesy of NewsBTC

Since its introduction, bitcoin’s price has never been the hallmark of stability. It has proven itself to be a highly volatile digital currency which has recently shown some signs of stability in its value. The value of bitcoin is currently hovering at the $440 range, which is considered to be less than its estimated value at the moment.

The value of bitcoin has been in the $400 range since the beginning of this year. With lots of changes expected on the bitcoin network, we can expect these changes to have an impact on the value of the digital currency this year. The mainstream bitcoin news media has been speculating about the rise in bitcoin price in the coming days.

Some of the potential reasons that will drive the bitcoin price upwards includes:

Bitcoin halving, the digital currency protocol is designed in such a way that the number of fresh bitcoins created after every 10 minutes is constant. This will ensure a constant supply of the digital currency in the network, maintaining its liquidity. At the same time, in order to limit the supply, the number of bitcoin created with each block discovery will reduce by half periodically. And the next halving in scheduled for later this year on 18th of July. Reduction in bitcoin rewards per block is bound to increase the value of bitcoin

China, the most populous country in the world is another important factor driving bitcoin prices. The country is known for its bitcoin use. As the country’s economy continues to fail, people have started to invest in alternatives like Bitcoin while bypassing the existing capital controls. Since the crisis started late last year, the bitcoin price has experienced an upward trend and the price has increased from around $230 in September 2015 to cross the $500 mark, before stabilizing in the $400s range. This increase in the price can be attributed to the involvement of a limited number of Chinese investors in bitcoin. There are plenty more, who can be expected to follow suit, further increasing the value of bitcoin.

According to technical analysis, even though the bitcoin price seems to have stabilized, the digital currency price trend seems to be searching for a direction and it may as well break out upwards, increasing in value.

Other factors that will drive the digital currency’s value includes the increase in transaction volumes on the bitcoin network, increasing adoption of blockchain technology among other industries and much-awaited changes to the blockchain infrastructure. The latest Bitcoin Core version is designed to accommodate the Lightning Network along with other bitcoin scalability measures.

In certain spheres, it is believed that bitcoin is currently undervalued over $200. A recent report published by Needham, an investment banking, and asset management firm, states bitcoin should be valued at least $655 which is almost 50 percent more than the current value of $440.

All these factors say a lot about the digital currency and its future, which makes us wonder what the bitcoin price will be, by the end of this year.

Ref: Needham - Byte-ing down barriers with bitcoin | Bitcoin Core |Zero Hedge |Image: The Bitcoin Economy - Ming Narak
Disclaimer: The statements, views, and opinions expressed in this column are solely those of the author and do not necessarily represent those of NewsBTC

Since the beginning of the current year, the bitcoin price has seen some ups and downs, but overall, the price has been climbing up.

2016 is said to be the year where the bitcoin price is supposed to climb to new highs, and it seems that all is going according to predictions. Of course, these predictions are set on the premise that the bitcoin mining reward will drop to half which will greatly affect the supply of coins.

A new fast climb

Since the 12th of February the bitcoin price has been rising, and today it went past the $440 mark, hitting $443.96. This represents a significant rise of about 20% in the price. There are approximately 150 days left until the halving. These are the first signs of what will happen to the price this summer. This year will certainly be a great year for the bitcoin price while too many things are happening in the bitcoin space. The block size increase, the halving, a lot of investments being made and big companies starting to accept bitcoin are events that are bound to push the price to a new all-time high.

The halving and the Roundtable consensus

Many traders are stressing that the halving anticipation already increased the price recently from the $200 figure to go over the $400 mark. However, the increase from the $200 figure up to the $400 mark might not be due to an anticipation motivated by the halving, but a mere result of a long-term downtrend that finally saw its reversal. It was bought and overbought from people that were waiting to jump in on any sign of a true reversal. Since the halving will decrease the supply it will be interesting to watch whether another price increase could be happening in a sustainable order before the halving.

Supply pressure will be mounting before the halving, and there’s some potential for new improvements in the core code to enhance capacity and the system. Then there’s the other side of offering new solutions like the bitcoin lightning network.

Finally, it seems that now, the majority of miners and developers have reached a consensus.  With the Roundtable consensus there will be no more discussions over what should be the midterm future of bitcoin.

Now, that the bitcoin community is sensing stability I wouldn’t be surprised if the bitcoin price goes up to $500 in the next 72 hours.