What is the bitcoin halving?
When is the bitcoin halving 2020?
Monday May 11th 2020, Bitcoin will be halving, for the third time since its inception. Meaning Bitcoin mining rewards will be cut in half. Making it harder to create or mine new bitcoins.
Hashrates are increased and more volatile , meaning the harder it is to calculate new blocks and the less Bitcoin enters the market.
The first halving took place in 2012, the reward has been reduced to 25 tbc
The second halving took place in 2016. the reward has been reduced to 12.5 btc
The third halving about to take place is about to be reduced to 6.75 BTC.
It halves every 210,000 blocks or an average of every 4 years.
Hashrates are increased and more volatile , meaning the harder it is to calculate new blocks and the less Bitcoin enters the market. It gets more and more difficult to solve the math problem that yields a new block.
Bitcoin was programmed to only allow a set number of Bitcoins to ever be created. A finite and set amount. 21 million bitcoins is the total Bitcoins that will ever be created. and we’re at 18.3 million now.
Bitcoin supply is kept in a controlled progression by The halving and increasing mining difficulty ensuring we don’t reach the total 21 million bitcoin cap too fast
It is expected the last bitcoin will be mined around the year 2140.
So what does this mean for you? And what can you do about it? How do you capitalize?
There is nothing special to do if you already own some bitcoin. Just Hold or HODL.
Historically, There were no immediate price increases in the halvenings of 2012 and 2016.
In the 2012 Halvening When the block reward was cut from 50 BTC to 25, the Bitcoin price rose from $2 to $12. And in 2013 (the year following the halving), BTC broke the $1,000 mark before falling back down to the $200 range.
In the 2016 Halving The price at that halving was about $650 and by December 16th, 2017, Bitcoin’s price had shot to nearly $20,000
As most investors will tell you past performance does not guarantee future results.
Some experts believe this Halving is somewhat different as more people are aware and involved in bitcoin.
However bigger players are involved therefore manipulation of price of Bitcoin can’t be dismissed.
Some experts believe it might hit $100,000 by 2021.
According to cointelegraph.com Pantera Capital Founder and CEO Dan Morehead provided an equally bullish prediction in a letter to investors at the end of April that included a lofty price target in the 12 months after the upcoming halving: “If history were to repeat itself, Bitcoin would peak in August 2021 — at $533,431.” He added, “Just sayin’ that there’s more than a 50-50 chance Bitcoin goes up — and goes up big.”
There have only been two halvings so far, and we are about to experience a historical moment.
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