CRYPTOCURRENCY BUSINESS
The most promising event that will take place in 2020 is the Bitcoin halving in May, which will reduce the number of Bitcoin rewarded for successfully mining a block in the digital ledger, from 12.5 to 6.25 BTC. Even though it sounds dramatic, it’s happened twice before and each event saw some interesting price action. In the months surrounding the 2012 halving, Bitcoin price went from less than $10 to more than $100 while in 2016 the currency surged from $400 before the halving to more than twice that by the end of the year. Bitcoin halving as one of the most important events for Bitcoin in the market The halving is a process that happens roughly after sometimes roughly after years which leads Bitcoin’s network to eventually cap the supply of Bitcoin to 21 million. The current block reward is set at 12.5 BTC but will be dropped down by a half to 6.25 BTC on 14 May 2020.
BLOCK HALVING EVENT 2020
DATE BLOCK REWARD
2012 | 28 NOV | 210,000 | 50 - 25
2016 | 19 JULY | 420,000 | 25 - 12.5
2020 | 18 MAY | 630,000 | 12.6 - 6.5
2024 | |840,000 | 6.25- 3.125
Halving increase new scarcity of Bitcoin to the market and Bitcoin traders are already predicting similar result compared to the price growth as the past two halvings. However, there are other factors leading the market traders shouldn’t forget that playing with demand and supply is the necessity to Bitcoin price change although under normal scenario kill the supply will raise the demand which eventually boosts the price up O expectations might be all that’s required to see an effect. “There are arguments for and against a price increase,
The halving is aimed at stabilizing the supply of Bitcoin as it approaches full saturation and there are no more Bitcoin to be mined. After that, well, Bitcoin may become rarer and more valuable than gold, or Satoshi Nakamoto could create more Bitcoin to be mined so the coin’s price can continue to be moderated, or it could gradually lose value to more abundant or practical digital currencies like Bitcoin Cash, which forked off from the original Bitcoin in 2017 for just that purpose. Ultimately, the world’s first cryptocurrency still needs to decide whether its scarcity alone defines its value.
Although By compared with the previous two halving cycles give strong believed that Bitcoin price expected to increase more and may marked as the time to get in some bitcoin before the halving is nearing approaching,
