Analysts Expects Bitcoin Price to Cross $20,000 Along With Doubling of Mining Costs Post Bitcoin Halving

Just around 100 days from now, the Bitcoin blockchain network will undergo an important process called the Bitcoin halving. The Bitcoin halving event occurs every four years where the complexity of the Bitcoin mining algorithm increases and the miner rewards are reduced to half.

With the total supply of Bitcoin tokens fixed at 21 million, and nearly 18 million already mined, analysts consider the Bitcoin halving event as a booster to the BTC price. Many analysts have been betting big on BTC price post its halving in May 2020.

Recently, the popular venture capitalist Mike Novogratz spoke to CNBC saying that Bitcoin price can easily move past its previous price of $20,000 once again this year.

“Right now, Bitcoin feels a little frenzied and we could see it surge up, but I think that by the end of the year we could certainly take out the old highs, or at least we go to the old highs,” said Novogratz.

So far in 2020, the BTC price has already surged by over 40%, however, Novogratz praised the altcoins market which has put up a fairly good show. Further continuing his stand, Novogratz said: “Bitcoin is probably the best new brand of the past eleven years — a $200 billion market cap for a line of code that came out eleven years ago. ...Because people have believed that it’s now a store of value — similar to gold, just gold’s got 3,000 years and $10 trillion, Bitcoin’s got eleven years and $200 billion.”

While the Bitcoin mining can be a good news for the investors, another report predicts that the average cost to mine BTC tokens will double post the mining period. The average cost to mine one Bitcoin (BTC) can jump to $12,525 from the existing $6851. The estimated costs is much above the current BTC price of around $10,000. Thus, if the BTC fails to catch up post the halving deal it could put a negative impact on the profitability of the crypto-mining industry.