Since the discovery of bitcoins 2009, halving has been twice. The first halving event was done in 2012 while the latest one was done in 2016. In the two bitcoin halving events, the prices reduced before and after the halving event. And as we can see, there are chances history will repeat itself in the coming halving since the value of bitcoin is already low two months before the halving.
Following the two halving events, miners have mastered and implemented the art of accruing sufficient bitcoin before the halving event to ensure they won’t suffer financial blows after the halving. That practice has seen many miners earn real profits in the past two bitcoin halving events. The fact that halving reduces the total amount of bitcoins mined as it nears 21 million blocks, miners will usually earn fewer bitcoins soon after the halving event. However, if the price of bitcoin does not decrease after the halving, miners are likely to witness significant revenues.
The 2020 Bitcoin Halving
As expected, bitcoin halving will take place somewhere in May or June. Almost everyone expects a slight or significant change in Bitcoin’s value. The halving of bitcoins is a bitcoin’s coded and programmed event that will always take place after the mining of 210,000 blocks. It happens such that the block reward miners are paid is reduced into half to keep the blockchain network secure.
How Will the Halving Affect Bitcoin Pricing?
Based on the previous two halving events, it’s obvious the price increases soon after the price. However, the actual cost is chiefly, dependent on the ratio of demand and supply. And if we consider this law, you’ll realize that there is always scarcity of bitcoin after the halving. The shortage of the asset leads to increased demand hence reducing the pricing.
Using the last four years as a yardstick, it’s obvious the cryptocurrency industry is experiencing an increased bitcoin mining and trading. Also, bitcoin has enjoyed more media airing than ever before. And since the price is currently low, more people are stocking their wallets now to ensure they can enjoy the possible returns after the halving event.
Just like it happened four years ago before the 2016 halving event, it’s likely we will see more rush purchases by traders. All traders want to enjoy the revenues realized from the possible price rise after the event, and so they are likely to make rush purchases.
If you had no idea what bitcoin halving entailed, the article above outlines everything you ought to know about the past and the upcoming halving event. It gives all factual details about the same to ensure you can prepare for the forthcoming event and keep yourself safe to avoid losing. For those who want to understand what happens after bitcoins are halved and how to trade safely, you should consider visiting change now for more details. No matter your trading or mining goals, you’ve to prepare yourself with valid information so you can stand the upcoming halving event, which can increase or lower the price or supply of bitcoin.