
May 26th, 2023
Explore the latest news about Bitcoin Halving, stay up to date on the major developments related to the event, check expert insights, Bitcoin (BTC) price forecasts and more.
Bitcoin price is hinged on the current perception of the macroeconomic outlook and monetary policies from the United States Federal Reserve.
The digital currency received a significant boost entering this year and despite the tough regulatory crackdowns and Fear, Uncertainty, and Doubt (FUD) that gripped the industry, the price of the cryptocurrency remained resilient.
Bitcoin halving is one of the most important events in the cryptocurrency market.
Analysts expect 2023 to be a “recovery year” for Bitcoin as the next Bitcoin halving event is 435 from now.
There are currently a number of factors that determines what positivity will trail the future of Bitcoin.
It has taken Bitcoin just 12 years to reach 90% of its total hard cap. However, it will take another 119 years for the remaining 10% of the Bitcoin supply to be achieved.
With the 2024 halving still about 1198 days, the stakes seem higher, perhaps because of the volatility of the trading market in 2021.
With three years left on the forecast, popular analyst PlanB and Bloomberg strategist Mike McGlone have stated confidence in a continuing BTC uptrend.
An on-chain data has confirmed the recent engagement of BTC whales with 88857 BTC worth about $1.1 billion moved from a wallet address at a fee of $3.58 at a block of 654,364.
Though at the moment Bitcoin price is far away from its all-time high, some analysts expect a bull run in the near future.
Bitcoin Halving is a significant event that halves the number of new Bitcoins that miners can produce per block. It happens only once in about every four years, which is when every 210,000 blocks are reached by miners.
The supply of Bitcoin is finite as its network would stop producing more coins once the twenty one-millionth bitcoin is mined. At this point, there would be a limited amount of bitcoin in circulation, that’s why bitcoin is often referred to as digital gold.
First BTC Halvening: The 2012 Event
As the first of its kind, the 2012 block halving happened at the 210,000th block.
Second BTC Halvening: The 2016 Event
The second block halving happened at the 420,000th block.
In 2020 the event, which is expected to take place on May 14, will consequently reduce the supply of bitcoins as miners would get 6.25 bitcoins per block mined, this number was 50 before the first halving that took place in 2012.
However, it is important to note that the event is not scheduled based on date, instead, it is scheduled in block height. After the second halvening that happened in 2016, the miner’s reward per block reduced from 25 to 12.5, which is still the current miner’s reward per block.
BTC halving decreases the number of new bitcoins generated per block. This means the supply of new bitcoins is lowered by 50% given the same mining capacity.
One of the major advantages of BTC halving its ability to reduce Bitcoin’s inflation rate. The May 2020 bitcoin halving is expected to be the third halving event since bitcoin’s inception in 2009. This means that the halving will take place on the 630,000th block. The fourth halving, which is expected to happen sometime between April and June 2024, will occur at block 840,000.
Bitcoin Halving is a significant event that halves the number of new Bitcoins that miners can produce per block. Bitcoin Halving happens only once in about every four years, which is when every 210,000 blocks are reached by miners.
The supply of Bitcoin is finite as its network would stop producing more coins once the twenty one-millionth bitcoin is mined. At this point, there would be a limited amount of bitcoin in circulation, that’s why bitcoin is often referred to as digital gold.
The last bitcoin halving event was the second of its kind and it occurred on Saturday, 9th of July 2016 at block 420,000. The halving saw miners’ reward per block decrease from 25 to 12.5.
The 2020 Bitcoin halving will take place at the 630,000th block and is predicted to happen on the 12th of May, 2020. Consequently, miner’s reward per block would decrease by half from 12.5 to 6.25. This halving is expected to lead to a major increase in demand for bitcoin as its supply would see a significant decrease after the halving event.
At every point of the bitcoin halving events, speculations of Bitcoin’s price rising keeps making the news. Bitcoin is often called digital gold because its supply reduces with time and for the fact that there could only be 21 million bitcoins created. Halving reduces the circulation of bitcoins and the digital asset becomes rarer. BTC’s price was $12 before the first halving event in 2012, this increased to $130 just three months after. In a similar fashion, Bitcoin’s price increased from $651 to $760 three months after the second halving event of 2016. Judging, from the previous events, one wouldn’t be off the grid to predict that the value of Bitcoin could rise after the forthcoming 2020’s bitcoin halving.