Bitcoin halving – What you need to know
The latest bitcoin halving is right around the corner, so we decided to take a look at exactly what it is, and what it means for bitcoin in 2020 and beyond. Many experts believe the upcoming bitcoin halving, sometimes referred to as the bitcoin halvening, will see a huge increase in price.
Could 2020 be the year we see a Bitcoin price surge?
What does a Bitcoin halving mean?
The Bitcoin Halving is an event that occurs after 210,000 blocks have been mined or on average every four years. When it happens it sees a 50% reduction, or a halving, in the block rewards on the bitcoin network.
When a block on the bitcoin network has been mined, a reward is paid out to the miner in bitcoin. At the moment the reward for a successfully mined block is 12.5 BTC. Around 12 May 2020, the next halving will occur and the reward will drop to 6.25 BTC.
This will be the third halving event in bitcoins decade long history. What will happen to the price of bitcoin due to halving can only be speculated, though experts have argued on both sides, some say a bull run is due, some are expecting a bear market. While its always hard to predict markets, especially bitcoin, we can look at the past as a way to try and predict the future.
What will happen when Bitcoin halves?
With the block reward halving every 210,000 blocks mined, a halving has already occurred twice before. The first time was in 2012 which was followed up by the 2016 halving event. After each BTC halving, the following year saw bitcoins price rise significantly. The price surges that followed each halving saw record price highs, but its hard to know if this was due to the reduction in the block reward.
From historical events, it could be assumed that when a bitcoin halving occurs, the price will rise the next year. A year after the 2012 halving, the bitcoin price rose to $1,000USD in November, a record high at the time. Four years and 210,000 blocks later, the 2016 halving event took place. A year later, in mid-December 2017, BTC reached another new record, making an all-time high of $19,500USD.
Will history repeat itself after the 2020 halving? We can only speculate, though its sure to be an interesting time for the worlds leading cryptocurrency.
How many bitcoin Halvings are left?
If a bitcoin halving happens ...