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Bitcoin Gold halving: what investors can expect

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Bitcoin Gold halving: what investors can expect

Bitcoin Gold halving: what investors can expect
CONTENT

  • The halving of the BTG coin will pass unnoticed for the majority

  • Experts predict the outflow of miners

  • The price after halving will not increase, and the volatility will increase

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The third halving: Bitcoin halving cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More BTG cryptocurrency will take place on block 630,000 and will take place on April 18 of this year. At the moment, 629,000 blocks have been mined. What changes await the market and the coin itself after the “split in two”, BeInCrypto asked domestic cryptoexperts.

Bitcoin Gold halving: what investors can expect

How rewards will decline

 

Conducting a halving actually means cutting the rewards for mining blocks by exactly half. If we talk about BTG, then the payments to miners gradually decrease with each 210,000 blocks mined. At the moment, the reward for mining a block is, as in the case of bitcoin, 12.5 BTG, and after the halving it will drop to 6.25 BTG. It should be noted that 100% of the reward goes to miners. Blockchain does not charge any fees for mining cryptocurrency.

At the same time, the level of inflation caused by a decrease in the size of the award will never increase, the founders of the cryptocurrency assure. On the contrary, a decrease in the reward for mined blocks and a decrease in the number of blocks available for mining will help to gradually reduce the inflation rate to an average of 1.8% per year..

Bitcoin Gold halving: what investors can expect

However, cryptocurrency experts do not share the enthusiasm of the cryptocurrency developers and assure that the attractiveness of BTG mining will decline. For example, Andrey Tonkolitko, the founder of the Crypto Art cryptocurrency fund, is sure that miners, as in the case of BCH halving, will receive thousands of dollars less in rewards, so mining itself becomes unattractive. Most likely, in the next few months, a massive transition of miners will begin from mining Bitcoin Gold to mining other cryptocurrencies, such as BTC or ETH..

What awaits investors

As for investors and crypto coin holders, for them halving will pass almost without a trace. Experts are confident that one should not expect any significant changes in the value of Bitcoin Gold. Most likely, the price of the cryptocurrency will remain the same.

Sergey Zhdanov, CEO of the EXMO cryptocurrency exchange, commented on the BTG halving situation:

Another halving of spring 2020, but it will be the first for Bitcoin Gold, as well as for BCH, which took place on April 8. Recent developments with Bitcoin Cash have confirmed the high volatility theory. So, before the halving, the coin showed growth and rose by an average of 2.8% per day, but after the asset began to fall and lost about 16%. A similar development of events happened with another bitcoin fork – BSV, the figures for the growth and decline of the coin were different.

It is likely that after the halving, Bitcoin Gold could repeat the scenario of BCH and BSV assets. We will find out very soon how events will develop in the future. In addition, the halving of the main cryptocurrencies is not far off, and, as we know, the entire market is moving towards bitcoin and there is a fraction of the probability that we will see an upward trend, as in 2017.

Andrey Tonkolitko adheres to a similar opinion:

I don’t think the BTG price will change much after the halving. For most cryptocurrency holders, the changes will not be noticeable at all. The only thing that can be said with a great deal of confidence is the growth of volatility. As with the BCH halving, the volatility of the Bitcoin hardfork will also increase..

Bitcoin Gold halving: what investors can expect

Recall that on April 8, the first ever halving of the BCH cryptocurrency took place. As experts predicted, the cryptocurrency has become more volatile, and miners gradually began to look for new, more profitable areas of mining cryptocoins.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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