Which Would Be The Next Bitcoin?
Today they might talk of EOS, Verge, Zcash, Neo, Ripple or even Stellar but tomorrow it will be IOTA and the trend continues. But one thing they aren’t insisting on is when the next coin will be released and what the implications of these changes to the bitcoin prices would be. First thing first, the countdown is down to less than two years. But, what does this mean to bitcoin miners and investors across the globe? With more and more cryptocurrency trading bot filling the crypto market, it sure is gaining traction. Gavin Wood the co-founder and former CTO of Ethereum, the second most well-known cryptocurrency after Bitcoin. Cryptocurrency, in theory at least, is supposed to break down borders and bring people together. But today, Wood believes that much of the crypto community has betrayed these ideals.
What Is The Expectation?
As mentioned the next bitcoin is almost here unless wild swings occur especially in the mining hash rate. The investors are expecting the coin reward for mining new Bitcoin blocks to drop from the current 12.5 Bitcoin to a 6.25 Bitcoin. But, the big question is; what will be the effect of the changes to price?
Shifting our focus back to 2016, nobody was sure about what might happen to the prices of the Bitcoin due to the changes that have or have not happened so far. This was 11 months after. In 2016 the prices hiked to a mouthwatering $ 19,000. However, in each case the prices fell sharply back.
The Reason For The Decline
Experts in Bitcoins and in the field of finance suggest that the fluctuations are similar to the behavior shown in other markets. Markets tend to show fluctuation in interest rates with the introduction of a new commodity. They can also show a decrease in the prices of a commodity with an increase in supply.
Most experts also suggest that the reason why they the previous halving have shown negligible changes in the prices of Bitcoin is that people are already informed on the changes way in advance.
When investors realize that the prices are going to reduce way ahead they always begin applying the changes to the price. Doing that ensures there are no sharp dips or even spikes that might affect the market.
Some Other Factors:
It is no secret that due to the increase in the number of people using bitcoins recently, the fees for transactions have also increased along with the increase in bitcoin prices and the vice versa is true.
For instance, in December 2017 there were 400,000 transactions made per day but the bitcoin prices and fees were high. These led to people using other means of transactions leading to only 200,000 transactions per day earlier this year. Therefore economics experts are suggesting that other cryptocurrencies should apply different methods than the one bitcoin is using.
Who Will Be Affected?
The miners are the first lot of people to be affected by the halving at the expense of electricity and the computer processing time. Mining in recent years has risen significantly with both the big and small mining consortiums making a lot of cash. However, the halving would lead to a big drop in the revenue for miners. But there is also a chance that very few miners will be able to continue with the process, and therefore, the network would definitely balance itself in such a case.