Bitcoin halving July 2016 Summary

Bitcoin algorithm was created with a certain inflation rate. However, this inflation rate will slow down over time. In July 2016 the inflation rate will slow down from 25 BTC per day to 12.5 BTC per day. This means all mining power will compete for 12.5 BTC per day instead for 25 BTC per day. This change will happen instant but no one knows for sure the exact time because it´s dependant on the total amount of blocks ever hashed in history.

 

Bitcoin halvings and short time projection

There have only been one halving before this one. That halving occurred in 2012. Below is a table with the short term projection of Bitcoin halvings.

 

 

What happened last Bitcoin halving in 2012

Last time in 2012 when the last and only halving occurred the bitcoin community was much smaller. Therefore, the price was much more volatile. The Bitcoin price experienced a sharp rise to around $200 and have never fallen back since then.

 

Bitcoin price predictions

No one can predict what actually is going to happen since it depends on so many factors. The factors are price , adoption, transaction volume, hashrate, difficulty, investments, other currencies, world market conditions etc. The most simple conclusion is the economic basic theory about supply and demand. The price will rise. However, the infirmation is not new and we have already seen a big price rally the last half yeas in Bitcoin. Is the halving already calculated in the price? Probably a part of it. But, we will also experience.

 

How will the halving impact the cloud mining industry

This question is probably even harder to predict than how the bitcoin price will behave. The mining industry is dependent on many factors as the Bitcoin price. But this is a very competitive business where only the strongest players with cheapest electricity cost survive.

 

Conclusion

We believe the price of Bitcoin will rise even more this year. A guess would be a sharp peak around the halving date with a fast fall back because traders take profit. After this, we will probably see a stabilisation and in the long term, the price will continue to follow the same patch as the total Bitcoin community.