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Bitcoin halving is one of the most significant events in the cryptocurrency market
What is Bitcoin halving or how to become millionaires in one day.
Since the century before last, every four years, the Olympic Games have consistently shaken the world. But recently, the financial sector has its own personal source of turmoil - an event that changes the cryptocurrency exchange every four years in an instant. We are talking, of course, about bitcoin halving.
Halving itself is an amazing financial phenomenon created to protect the cryptocurrency ecosystem from excessive inflation. Halving is a deliberate, programmed halving of the mining reward. This unique mechanism will literally save the Bitcoin deficit.
The creator of the cryptocurrency, Satoshi Nakamoto, decided to periodically devalue Bitcoin mining by putting the process into the BTC code. Bitcoin halving occurs every 210 thousand blocks, which is approximately equal to the period of every four years.
The first halving was held in November 2012 and the results were amazing. As soon as mining rewards fell, the price of bitcoin skyrocketed at an incredible rate. Recreating the BTC deficit also takes a certain amount of time each time, during which the price of the cryptocurrency rises. For example, in 2016, the value of bitcoin set a historic record of $ 19,843 in just 1.5 years.
The upcoming halving will be the third in a row and is predicted for May 12, 2020 - it is on this day that the Bitcoin signal block, block number 630 thousand, should be mined. From now on, mining fees will drop from 12.5 BTC per block to 6.25 BTC. On the eve of the halving, bitcoin prices have already begun to rise noticeably - in the last month alone, the value of BTC has increased by $ 4,000. In turn, the lowest price is approximately 459 days before the halving.
Forecasts and concerns
Despite a clear upward trend in prices after the halving, the opinions of experts on the forecasts are strikingly different. The well-known cryptanalyst PlanB believes that halving will make Bitcoin ten times more expensive, but venture capitalist Tim Draper suggests that it could be about $ 250 thousand for BTC as early as 2022.
What is Bitcoin halving or how to become millionaires in one day.
Jason Williams, co-founder of Morgan Creek Digital, recalls the stitching of the halving effect and predicts a rise in price only in six months. Some analysts make even less positive assumptions - the co-founder of the Nexo crypto platform Anthony Trencheva expects the price of bitcoin to rise at $ 50 thousand by the end of 2020. There are also concerns in the industry that many miners may abandon the unprofitable cryptocurrency mining procedure after halving.
In fact, no one can accurately predict the consequences of the next halving. There are many influencing factors in the system, for example, the fact that 30% of bitcoins have already been lost should not be overlooked. After the first halving, the price of bitcoin increased from $ 10 to $ 1000, but after the second it was already talking about $ 20,000 per coin.
In addition, cryptocurrency prices are known to be quite volatile, and often it is actually difficult for them to give an explanation, let alone clearly foresee an increase. Surprisingly, investing in cryptocurrencies often rests on bare faith in the integrity of the system, which creates already real demand and price spikes. Periodic halving will be valid until 2140 and it is impossible to say that every time the process will be the same.
Nevertheless, the mechanism of bitcoin operation includes such an insurance against unsuccessful halving - if the procedure does not lead to an increase in demand and price, the process of changing the complexity required to receive mining rewards will be launched. The difficulty of mining will decrease to encourage miners, which means that bitcoins issued as rewards will become more affordable.
What is Bitcoin halving or how to become millionaires in one day.
Since the century before last, every four years, the Olympic Games have consistently shaken the world. But recently, the financial sector has its own personal source of turmoil - an event that changes the cryptocurrency exchange every four years in an instant. We are talking, of course, about bitcoin halving.
Halving itself is an amazing financial phenomenon created to protect the cryptocurrency ecosystem from excessive inflation. Halving is a deliberate, programmed halving of the mining reward. This unique mechanism will literally save the Bitcoin deficit.
The creator of the cryptocurrency, Satoshi Nakamoto, decided to periodically devalue Bitcoin mining by putting the process into the BTC code. Bitcoin halving occurs every 210 thousand blocks, which is approximately equal to the period of every four years.
The first halving was held in November 2012 and the results were amazing. As soon as mining rewards fell, the price of bitcoin skyrocketed at an incredible rate. Recreating the BTC deficit also takes a certain amount of time each time, during which the price of the cryptocurrency rises. For example, in 2016, the value of bitcoin set a historic record of $ 19,843 in just 1.5 years.
The upcoming halving will be the third in a row and is predicted for May 12, 2020 - it is on this day that the Bitcoin signal block, block number 630 thousand, should be mined. From now on, mining fees will drop from 12.5 BTC per block to 6.25 BTC. On the eve of the halving, bitcoin prices have already begun to rise noticeably - in the last month alone, the value of BTC has increased by $ 4,000. In turn, the lowest price is approximately 459 days before the halving.
Forecasts and concerns
Despite a clear upward trend in prices after the halving, the opinions of experts on the forecasts are strikingly different. The well-known cryptanalyst PlanB believes that halving will make Bitcoin ten times more expensive, but venture capitalist Tim Draper suggests that it could be about $ 250 thousand for BTC as early as 2022.
What is Bitcoin halving or how to become millionaires in one day.
Jason Williams, co-founder of Morgan Creek Digital, recalls the stitching of the halving effect and predicts a rise in price only in six months. Some analysts make even less positive assumptions - the co-founder of the Nexo crypto platform Anthony Trencheva expects the price of bitcoin to rise at $ 50 thousand by the end of 2020. There are also concerns in the industry that many miners may abandon the unprofitable cryptocurrency mining procedure after halving.
In fact, no one can accurately predict the consequences of the next halving. There are many influencing factors in the system, for example, the fact that 30% of bitcoins have already been lost should not be overlooked. After the first halving, the price of bitcoin increased from $ 10 to $ 1000, but after the second it was already talking about $ 20,000 per coin.
In addition, cryptocurrency prices are known to be quite volatile, and often it is actually difficult for them to give an explanation, let alone clearly foresee an increase. Surprisingly, investing in cryptocurrencies often rests on bare faith in the integrity of the system, which creates already real demand and price spikes. Periodic halving will be valid until 2140 and it is impossible to say that every time the process will be the same.
Nevertheless, the mechanism of bitcoin operation includes such an insurance against unsuccessful halving - if the procedure does not lead to an increase in demand and price, the process of changing the complexity required to receive mining rewards will be launched. The difficulty of mining will decrease to encourage miners, which means that bitcoins issued as rewards will become more affordable.
