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Bitcoin’s takeoff to $13,000 is explained by “halving”, “Facebook” and the trading war between the USA and China

Bitcoin’s takeoff to $13,000 is explained by “halving”, “Facebook” and the trading war between the USA and China

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Jim Anderson - Public Relations

The main digital currency has grown to a maximum value in 17 months. In the current year, Bitcoin is actively returning to the upstream trend. On Wednesday, June 26, the BTC rate rose to $12,940 per coin, which is the maximum value since January 2018. There are many theories about what facts and events led to the end of “crypto winter”, but recently one of them is clearly gaining popularity. It’s about halving (halvening) – an event when the miners’ remuneration is halved.

Miners compete with the computing power of their computers to quickly solve competitors to solve difficult math problems to verify transactions on the Bitcoin network. The one who wins this race and confirms the transaction first gets a reward. Now it is 12.5 BTC. However, every few years, the remuneration amount is halved to contain inflation. Experts say that by May 2020, the miners’ remuneration will be reduced to 6.25 BTC.

Other theories that explain the rapid growth of the main cryptocurrency, which became noticeably more active in April, suggest that bitcoin investors hedge the exacerbation of the US - Chinese trade war, as well as news that Facebook is developing its own cryptocurrency. Recall, Donald Trump in May introduced a 25% percent duty on Chinese products worth $200 billion.