The Strategist

What to expect from Bitcoin in 2020?

12/26/2019 - 09:51

Bank of America Merrill Lynch recognized Bitcoin as the best investment asset for the last 10 years and 2019.

The dynamics of the Bitcoin exchange rate depends on the discourse of representatives of regulatory bodies and watchdogs. There is positive news for the crypto industry that can strengthen the position of Bitcoin in 2020. For example, US Congressman Paul Gosar introduced a bill aimed at clarifying the regulation of cryptocurrencies. The bill was called the Cryptocurrency Act of 2020. It defines how US financial regulators should regulate the cryptocurrency industry.

On December 20, Republican Warren Davidson, an Ohio congressman, and Democrat Darren Soto of Florida presented the Token Taxonomy Act in Congress. If the bill enters into force, then cryptocurrencies will cease to be a phenomenon that the Securities and Exchange Commission (SEC) is entitled to regulate.

The amount received for creating a block of bitcoins is reduced by about half every four years. Until the end of November 2012, the reward for one block found was 50 bitcoins. Over the nine years of the existence of bitcoin, this figure dropped to 12.5 bitcoins.

A new Bitcoin fork will occur around May 17, 2020. After this event, the block reward will decrease from 12.5 BTC to 6.25 BTC. This reduction was embedded in the Bitcoin program code. It is assumed that a reduction in supply will lead to an increase in demand and, accordingly, in prices.