Since the start of the New Year 2020 there is talk about the Bitcoin mining reward split event and what its impact will be.

The split finally occurred and the reward for bitcoin miners was reduced from 12.5 BTC to 6.25 BTC.

The economic theory of supply and demand indicates that since miners receive only half the amount of new bitcoin for the same work, they will produce only half the quantity, which limits the supply of new bitcoin, and if the demand remains the same, the price will rise, as a result of increased demand and lack of supply. .

Read:North Korea used LinkedIn and Telegram to hack cryptocurrency exchanges

Days before the split, the bitcoin had fallen to minimum levels, then rose from $ 4,500 to $ 10 thousand, an increase of 122%, which made many analysts speculate a rocket rise with the split, but instead, the bitcoin returned to decline and fell to the level of $ 8,700 and now it is trading at 9000 dollar.

Looking from another angle, we find that the split event did not cause much fuss, as the daily mining revenues decreased from 15 million dollars to 8 million dollars, and the price fell to 8,400 dollars before resuming its rise to what it is now.

If the event was related to a central financial institution, for example, and its bankers were told that their returns would be cut in half every four years, there would be chaos, riots and demonstrations calling for the refusal of the reduction, and with the approaching decline, the miners seem to be more aware of what they are dealing with, and they know well the Bitcoin mechanism and agree to it as it is, And what it was written for.

Before the halving, on May 8, Pankaj Palani, CEO of Delta Exchange, said:

Read:Starbucks enters the world of cryptocurrency through the Bakkt platform

Traders are very bullish on the halving with many expecting Bitcoin to break the 11,000 mark before the halving.

But after the half, he saw all this coming, andExplain that by saying:

The Bitcoin reward halving, as expected, has been quiet in terms of price and hash rate, with the real impact likely to be felt over the coming weeks and months.

Bison Trails employee Victor Bunin told:

The social consensus around Bitcoin monetary policy is strong and the fact that there weren’t even a peep from miners, this halving indicates that the system is really working.”

The split is still a huge event:

Sengin David Jong, managing director of the International Monetary Reserve, found the split process attractive nonetheless. He stated:

It was a very exciting event, as you had this very certain event against the backdrop of all this market chaos.

Financial instability and quantitative easing are the rocket fuel for Bitcoin’s inevitable launch through historic highs over the next year.

While Ray Youssef, CEO of peer-to-peer trading site Paxful, expressed his opinion highlighting the crypto community, telling:

Read:Binance CEO Praises Bear Market and Winter Crypto and Explains Why!

The spirit and unity of the Bitcoin community is unique.

It was the human class that brought me and my co-founder to Bitcoin, and it’s good to see it again!

The market may take some time to react to the halving event.

At this point, I am waiting to see how events play out in the near term, specifically to guard against a broader market correction and miners capitulating.

Evan Coe, CEO of Ampleforth, said:

The medium and long term looks bright for Bitcoin.

Read also:

History repeats itself: Bitcoin plunged more than 10 percent before the 2016 split

Bitcoin Mining Bounty Split Reveals Secret Message… Get to Know It