- Bitcoin Halving 2020 is just around the corner and every enthusiast and market watcher are on their feet to witness the Halving.
- The most important aspect is what will happen to Bitcoin post the Halving that will happen this year.
- In this Halving, the mining reward will decrease to 6.25 BTC per block from 12.5 BTC per block currently.
The most anticipated Crypto day of ‘Bitcoin Halving’ is just around the corner and every enthusiast and market watcher are on their feet to witness the Halving. The most important aspect is what will happen to Bitcoin post the Halving that will happen this year.
With the current figures of Bitcoin, value is hovering over $8,500 with a market capitalization of $155,358,961,548, in the previous bull season which ended shortly before; Bitcoin was trading at $10,000 mark trying to climb above that value, however, due to its volatility it chose the Bears instead. This is expected to turn around after the Bitcoin Halving 2020 (mostly occurring in May), scheduled to happen in a couple of months.
What is Bitcoin Halving?
Bitcoin Halving is the self-declared process where the mining reward of Bitcoin gets halved after 210,000 Blocks are mined, according to the Block figure this happens every four years. Bitcoin Halving occurs to secure code and its ecosystem of the Blockchain network and reduces the chances of inflation.
In this Halving, the mining reward will decrease to 6.25 BTC per block from 12.5 BTC per block currently. This will trigger scarcity in Bitcoin, which will emphasize the similar behaviour of that of Gold; both of them show the same trend in market capitalization.
The expected Bitcoin Halving will happen around May of this year if there is no fluctuation in the current hash rates, otherwise, if the hashrate decreases the Halving might occur later and if the hashrate increases the Halving will occur sooner than predicted. Hashrate describes the rate of mining where each block is hashed per transaction, which if it decreases the mining, which will increase the halving period and similarly vice versa.
Previous Bitcoin Halvings
Bitcoin Halving is the periodical process occurring when 210,000 blocks are mined. The previous Halvings have occurred as follows.
- Bitcoin was introduced on 3rd of January, 2009. At this release, 50 new Bitcoins were circulated in the market every 10 Minutes (This figure was the limit at the initial). This figure is also the mining reward given to the completion of hashing of each block.
- The first Halving occurred on 28th of November in the year 2012; the circulation rate was reduced to 25 Bitcoins for every 10 minutes, that is for each block mined 25 BTC was awarded for the mining process.
- The second Halving occurred on 9th of July in the year 2016; this Halving reduced the mining award to 12.5 BTC for each block from the previous figure of 25 BTC.
- The predicted occurring of this year on May is set to halve the mining award from 12.5 BTC to 6.25 BTC.
What’s in Store after Bitcoin Halving 2020?
Provided the future demand and scarcity after the Halving, the price of BTC will skyrocket most probably overtaking its previous high of $20,089 clocked on 17th of December, 2017. However, the effect might not be observed as soon as the Halving occurs; it will take some time to set in the new market conditions.
The majority have predicted boldly that Bitcoin will take the strong Bull rally post the Halving. However, Bitcoin has failed to reach $11,000 despite many predictions. BTC has almost failed, which might also show the possibility that Bitcoin might not perform as expected after the Halving as well. Everyone wants Bitcoin to reach the new all-time high so let us cross fingers and anticipate the same positively.