Bitcoin: ‘Most Dramatic’ 2020 Halving Could Cut Supply by $63M a Week

In a Twitter discussion beginning Oct. 18, commentators noted that next year’s event will reduce the amount of new Bitcoin in circulation up to $63 million per week at current prices.

The block reward refers to the amount of new Bitcoins miners receive for mining a new block. Currently 12.5 BTC, after the halving, the reward will fall to 6.25 BTC.

Previous halving events have triggered upward price motion, leading to suggestions that 2020 will be no different. Additional studies, notably the popular Stock-to-Flow model, have corroborated the theory that Bitcoin price must surge as the mining reward decreases.

Comparing historical data, Crypto Rand noted that the 2012 and 2016 halvings removed $302,400 and $8.19 million per week from circulation respectively. 2020’s “most dramatic” halving, the analyst forecast, will remove $63 million.

Investor Alistair Milne broadly agreed, adding that at its current price of $8,200, there will be $51.7 million less in new Bitcoin each week.

“To those that think Bitcoin's inflationary schedule is less effective with time ... At current values (~$8200), 2020's halving will remove $51.7million/week of newly mined Bitcoin from the sell-side,” Milne summarized on Monday. Read More...