The price of bitcoin is set to increase in 2016, with many speculators being excited for what is to come. The digital currency nearly doubled in 2015, and is currently trading at $431 range.
Bitcoin’s price has surged more than 900 percent since it began trading in 2010, and will continue to grow if things go as forecasted. In 2016 the event of bitcoin halving will occur, in which the number of coins that miners is mining is cut in half. This event occurs every four years, and as the reward is reduced in half, the speed of supply will decline, many speculators will take this opportunity and bet the price to increase. Summer 2016 marks the halving event, where the cap every block will lower to 12.5 BTC in ever 10 minutes. Many people feel this halving will lead to a major Bitcoin price boost. The last time this occured, there was a extensive increase in the price.
Currently there are 15,022,550 bitcoins in circulations, and 71.5360% of the total bitcoins have been mined. These are large milestones for bitcoin, and this event will be another milestone to worth waiting for.
There are many websites that mark the countdown towards the halving event, as it is seen significant in the bitcoin community. You can visit http://bitcoinclock.com/ to anticipate for the noteworthy event.
The reason the bitcoin halving was implemented by the creator of bitcoin , was to control the inflation. Bitcoin is unlike traditional fiat where currency value may drop quickly. Bitcoin was designed to maintain and increase value over the years.
The event will hurt mining companies that profit from the mining business, because the reward will be cut in half. But users of bitcoin can stay optimistic as the price is expected to increase greatly.
New bitcoins are generated when miners make their efforts to solve complex equations and aid in the recording of transactions. The amount of bitcoins miners can create is cut in half every four years, because of limitations in the its code.
Many new startups and established companies have invested, and engaged in the bitcoin ecosystem. $900 million has been invested by venture capital firms, and many new companies are basing themselves around bitcoin. The adoption of bitcoin by consumers and merchants alike will also help to make bitcoin more successful in 2016.
Many speculate that wall street will join the fun, and begin to trade bitcoin. Banks as well have shown interest in the fundamental blockchain technology, which may also lead to future interest in bitcoin.
The total amount of bitcoins that will be created is capped at 21 million, because of those who were responsible for the creation of bitcoin such as Satoshi Nakamoto. This means there is limited supply, but the demand will continue to grow. When demand is higher then supply, the value of bitcoin will surge to new heights, and overtime the price of bitcoin will go upwards. These are some of the many positive factors that will increase bitcoin adoption, and investment.