CRYPTO NEWS AGREGATOR
Mon, Apr 6, 2020 11:00 AM by Sumit Bera

Bitcoin Halving: The Consequences

Bitcoin Halving

This year, all Bitcoin excavators will confront again an occasion, what cuts the quantity of coins they mine day by day. From the start look, it can appear to be a fiasco. Be that as it may, it tends to be very productive for all diggers.

Halving is an artificial reduction in the number of coins mined. Halving was in 2016 and 2012 and affected not only the earnings of miners but also the value of the coin. It reduces the reward by 50% each time exponentially. The 2020 halving will occur on block 630,000. The next halving is going to happen in May 2020.

Why do we need halving?

Halving helps Bitcoin create a deficit, increasing the value of the coin: the greater the demand, the higher the price. Taking into account the current mining speed and all the future holdings, the last BTC coin will be mined in 2140.

Bitcoin is set to be mined with only 21 million coins. Production is halved in order to prevent inflation. Unlike Central banks, which can simply print more cash, there is a limited number of Bitcoins that can exist, just like gold rather than the national currency.

What happened after the last halving?

Here’s what happened after the last halving (09.07.2016): the price reached the bottom ($500) 539 days before the event, then increased to $2525 in one year.

Broken Bitcoin crypto coin

Reducing the supply of Bitcoin can have many consequences not only for the crypto market but also for the global economy.

And this will eventually either destroy the centralized banking system or at least constrain them and their inflationary policies, which will ultimately lead to a more just world.

Statistics for the past 7 years show that each halving was accompanied by a multiple increase in the exchange rate of cryptocurrencies.

What should we expect?

Big changes are coming — Bitcoin Exchange Traded Funds, and countries all around the globe like Japan, USA, Australia, Denmark, Estonia and many others are using blockchain technologies and legalizing cryptocurrencies. Another halving is coming, these events will probably spur the growth of the price of Bitcoin.

Those who made the purchase at the bottom price will get a huge profit, but it is up to you to decide your own price threshold.

Stay in touch!

Subscribe to our weekеly newsletter!
Related:
Zoom