Limited Bitcoin supply in the long term view
After a sharp fall in 2018, the price of Bitcoin increased again during this year. The most important cryptocurrency is experiencing a new renaissance. Cryptoanalyst and expert, Josef Tětek, points out that even while Bitcoin’s investors interest is declining, it really hasn’t ceased the construction of infrastructure and related technologies. Therefore, the attention of some institutions mainly headed by some exchanges is growing. These should be unambiguously bullish factors for Bitcoin in the long term. Also, it is important to remember that Bitcoin have limited supply.
What is next for Bitcoin?
Every day, the number of bitcoins generated goes something around 1800. This figure will be halved by May 2020, and it will be equally reduced by 2024. Some investors link these events to the beginning of a new growth cycle, but no one is certain about it. This will peak the cryptocurrency price at historical heights. Mining bitcoins means that their miners will provide computing power to ensure the proper operation of the bitcoin supply and transactions, while rewarding them in addition to transaction fees, and newly generated coins. A one-time amount of such a reward is reaching now 12.5 bitcoins, with a new “payout” to a lucky hardware-efficient fortune every ten minutes.
In the other hand, mainly because bitcoin have increased during the last months, some experts doubt about its viability. “In the long run, this is about paying for network security. The miners are contributing to this, and their activity will stop paying off because of their reduced remuneration. This question will be pivotal in the next ten or twenty years, with no easy answer” said the former Todco developer Bitcoin supply protocol in a recent interview.
Here you can read more about Bitcoin supply and its rise during 2019: https://thenextweb.com/hardfork/2020/01/14/bitcoin-price-rose-84-2019-q4/
