From its debut sometime around 2009, Bitcoin created a stir worldwide. It is the first cryptocurrency in the world based on the blockchain technology and remains one of the most successful and popular ones. Starting out at about $1 during its inception, the Bitcoin peaked at a staggering price of nearly $20,000 in 2017. However it then declined and was steady at around $10,000 towards the end of 2019.
Last week in this article from Forbes.com, it was explained why it is thought that Bitcoin could hit the $50,000 mark this year. Nexo platform co-founder Antoni Trenchev suggested that it could happen by the end of 2020. The Nexo Platform is an online blockchain-based overdraft system which allows users to take out cash loans against the cryptocurrency they hold.
So why is it likely that the Bitcoin will rally again? Researchers and analysts report that it could happen because of a “halving event“. This happens when the amount of Bitcoin generated over a fixed time interval decreases by 50%. This phenomenon makes Bitcoin more scarce, occurs almost every 4 years, and the last time it occurred, the Bitcoin rallied significantly.
When is the next halving event occurring? You can find out here.