“If price performance following the November 2012 and July 2016 halvings is any indicator, bitcoin’s price should increase significantly over the 10- to 12-month period following the [third] halving.”
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That’s Ciara Sun, head of worldwide business and markets at cryptocurrency exchange Huobi. Speaking on the third podcast episode of “Bitcoin Halving 2020: Miner Perspectives,” Sun was joined by Bitfarms CFO John Rim. the two shared their insights on the expected market impacts of bitcoin’s third halving event.
Sun noted that a lot of crypto investors expect a considerable bitcoin increase within the months following the 50 percent reduction in bitcoin block subsidy rewards. However, Sun also caveated her statement saying the market dynamics leading up to May’s halving event are “more complicated” this point around thanks to global events like the COVID-19 outbreak.
No matter the impact on bitcoin’s market value , Rim affirmed miner revenue per terahash would likely readjust and normalize to pre-halving levels as a results of mining difficulty adjustments. “The whole network relies on mining for the validation of transactions and for a self-incentivized system like bitcoin, you would like miners to be profitable,” Rim said.
For more information about the bitcoin halving, download this free CoinDesk Research report, which features over 30 different charts and extra commentary from mining industry experts.