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2020-04-14 10:54:50

Bitcoin Halving In 2020: What Will Happen

Every crypto enthusiast has heard and is waiting for an approaching bitcoin halving.

But let's take a look at these concepts and plunge into the past to see how previous halvings affected the price of the main cryptocurrency - bitcoin.

What is Bitcoin Halving?

Halving (halving, “halving”) is a 2-fold reduction in the amount of remuneration to miners for mining a new block on the blockchain.

As you know, miners ensure the efficiency of the Bitcoin network, for which they receive a reward.

So, the algorithm built into Bitcoin provides for halving every 210,000 blocks, that is, every 4 years. It is expected that the last bitcoin coin (there are only 21 million of them) will be mined approximately in 2140.

After that, miners will be rewarded only at the expense of commissions in the bitcoin network.

The next halving is expected on May 13, 2020.

Halving has already been done 2 times:

November 28, 2012

July 9, 2016

When it was just beginning, miners received 50 bitcoins for 1 block, after the 1st halving, the reward decreased to 25 bitcoins, and after the 2nd - to 12.5 bitcoins.

This year, the third halving will take place, which will reduce the reward to miners to 6.25 bitcoins per 1 block.

And in the future there will be a decrease.

The task of halving is to control the emission of cryptocurrency and prevent inflation. And since there are only 21 million coins, and more than 17 million coins have been mined, unlike fiat currencies, bitcoin is not subject to inflation.

To create more than 21 million coins will fail.

How Did The Price of Bitcoin React To Previous Halving?

Halving 2012 and 2016 contributed to increased volatility in subsequent years, after a decrease in rewards. The price of bitcoin went up sharply and from $ 12 reached $ 1200 or from $ 200 to $ 19800, and then fell 4-5 times.

Traders speculate on such a fluctuation of the course, buying at one price and trying to sell at another.

Here you can track exactly up to the second when the halving occurs:

Read Also:

— How Bitcoin Halving Can Change Crypto Market

— Find Out About Demo Crypto Trading

— What You Should Know About 2FA

The 3rd Halving in Bitcoin History

This event is one of the most important in the crypto world for 2020. Production will decrease - supply will decrease (miners usually immediately sell bitcoin, since they need to pay electricity bills, etc.) - price increases. That is how the previous 2 halving went.

Today, the opinions of experts are divided.

Some say that since Bitcoin is the main cryptocurrency, it can pull the entire market up, as it has always been, because the dominance of Bitcoin in the market has only grown in recent years.

Others are confident that nothing will happen due to the situation in the world caused by the crisis and pandemic.

Some investment companies are expressing very positive impressions regarding the value of bitcoin this year.

So, for example, Digital Asset Research believes that this year BTC could cost $ 60,595. Now it is trading at $ 6900. Their opinion is based on a price analysis in comparison with the two already held halvings.

There is also an opinion that if the price of Bitcoin responds to the next halving, then in the next halving, which will take place in 2024, the price can go up to $ 732,256

Banks also monitor cryptocurrencies, as analysts at the German bank Bayerische Landesbank believe that there is a considerable chance of reaching the level of $ 90,000 for 1 bitcoin. The analysis is based on the ratio of stocks to growth. By these indicators, bitcoin is approaching gold.

Many companies, foundations, media, experts express their opinions on the further development of the market. Their opinions on the price of bitcoin can be found on the Internet.

Now the accumulation period will begin, when they usually accumulate and try not to sell bitcoin in the hope that the price will fly up, as it happened before.

Therefore, it is worth keeping Bitcoin in your investment portfolio.

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