The effect of the upcoming halving has not yet been taken into account in the price of bitcoin, which means that after reducing the reward, miners for the mined block should wait for an increase in the BTC rate, says the general director of Binance.
Halving, which should happen on the bitcoin network in May 2020, has not yet been taken into account by the current price of bitcoin. Reducing the reward for miners for the mined block from 12.5 BTC to 6.75 BTC can double the price of cryptocurrency, says Binance CEO Changpeng Zhao.
In an interview with BlockTV, Changpeng Zhao predicted the upcoming upward movement of the Bitcoin exchange rate ahead of the May Halving.
“I personally believe that halving is not yet included in the price. But this is a personal opinion, and it can easily turn out to be erroneous. ”
As evidence of his point of view, Zhao recalled the effect of previous halving, and also suggested that, due to a decrease in the number of coins mined, the difference between supply and demand will increase. “The part of demand from customers is growing, the part of supply is cutting down.”
Zhao added that past events are not always able to predict the future, but he believes that miners will not want to sell mined bitcoins at a loss or low profit, which will lead to a decrease in supply and an increase in demand.
Zhao also expects an influx of new cryptocurrency users and investors.
Despite the investment interest caused by halving in May, Bitcoin will continue to fluctuate around the $ 10,000 mark. According to Zhao, there is a psychological barrier around “beautiful round numbers,” such as $ 10,000, which causes current market volatility.
A recent report by Tradeblock, a research firm, claims that after reducing block rewards, the cost of mining a single BTC will increase from $ 6,800 to $ 12,500.