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Another reason for Bitcoin to grow 200% this year

Jul. 5, 2019

Bitcoin was in danger this year, increasing by almost 200% since the beginning of the year. There are several theories, and one in particular is gaining ground.

This is called "cut in half," an event that halves the rewards of so-called Bitcoin miners. To understand what this means, it is important to know how the underlying bitcoin technology works, the chain of blocks.

Juveniles with powerful computers compete to solve complex mathematical problems to validate Bitcoin transactions. Whoever wins this race will be rewarded by Bitcoin.

Currently, the number of Bitcoin miners in the stands is rewarded with 12.5. Premiums are cut in half every few years to limit inflation. Experts predict that the mine's reward will be reduced by half to 6.25 new bitcoins by May 2020.

This process takes place approximately every four years. This is due to a rule contained in the Bitcoin software defined by Satoshi Nakamoto, the unknown or the unknown that Bitcoin created.

Bitcoin is often called "digital gold" because of its supply and liquidity dynamics. Experts believe that the value of cryptocurrency is supported by the shortage of the total number of bitcoins available.

The total number of Bitcoins never reached is limited to 21 million. Hileman added that almost 80% of this amount had already been extracted, adding that the roof would not be reached before 120 years.

Traders see the potential of an uptrend in such a case, as it ultimately reduces the supply and increases the price of the digital asset.

As mentioned above, there are a number of other theories about the increase in Bitcoin prices this year, ranging from investors who use it as a hedge in the US-China trade war to Facebook, which is its own cryptocurrency.

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