“Oh no bitcoin halving is coming, what I going to do, oh no Bitcoin will die” – A friend of my, on these days.
What is Bitcoin halving?
My friend, I know you are a little bit worried about these buzzwords, I want to tell some things. Do you have bitcoin? If your answer was yes so do not worry all is going to be ok, although if your answer was no, you do not have to worry either. Bitcoin halving is an important, exciting, and interesting event, here you have some definitions:
A halving – sometimes referred to as halvening – is a planned reduction in rewards miners receive (the term is mentioned in Bitcoin’s code). Halvings happen once every four years or so – more precisely, every 210,000 blocks of transactions. As the name suggests, each one cuts the amount of Bitcoin miners receive per block reward in half. At Bitcoin’s launch in 2009, miners received 50 Bitcoin per block, but that reward was reduced to 25 in the first halving, in 2012, to 12.5 in 2016, and will fall to 6.25 tokens in the next. – www.bloomberg.com Vildana Hajric and Brandon Kochkodin
As part of Bitcoin’s coin issuance, miners are rewarded a certain amount of bitcoins whenever a block is produced (approximately every 10 minutes). When Bitcoin first started, 50 Bitcoins per block were given as a reward to miners. After every 210,000 blocks are mined (approximately every 4 years), the block reward halves and will keep on halving until the block reward per block becomes 0 (approximately by year 2140). As of now, the block reward is 12.5 coins per block and will decrease to 6.25 coins per block post halving. www.bitcoinblockhalf.com
According to the BTC protocol, BTC’s total supply is 21 million, and the amount of BTC generated per block with rewards is set to decrease geometrically, with a 50% reduction every 210,000 blocks. The average BTC block generation interval is 10 minutes, so that BTC halving occurs every 4 years. The upcoming halving will occur when its block height reaches 630,000. .www.okex.com
In all their infinite wisdom, Bitcoin’s anonymous inventor Satoshi Nakamoto decided that only 21 million BTC would ever exist. They wanted new coins to be released gradually into the market — but at the same time, it was crucial for a generous supply of Bitcoin to start circulating sooner rather than later. www.coinmarketcap.com
Block halving is an event that occurs once roughly every four years wherein the block reward miners receive upon solving a block on the Bitcoin network is reduced by half. As a result, the rate at which new bitcoins are generated decreases. The halving event is periodical and is programmed into Bitcoin’s code. According to the Bitcoin algorithm once every time 210,000 Bitcoins enter circulation, a halving takes place. www.nexo.com
Past halving price performance
There is no surprise that something is going to happen after the bitcoin halving event. Some people think that nothing is going to happen after the halving, however, other people think that bitcoin price is going to fall, at Branzel we have some ideas about this topic, so here we go:
A bitcoin halving of supply should cause an increase in price if demand for Bitcoins is equal or greater than what it was before the halving event. Above is a chart showing the past price performance of the two halving events.
Bitcoin Halving Searches on Google Hits All-Time Highs
People are a little bit worried about the bitcoin halving, so they started to search for this word, since February 2020 google shows an increase in its google trends web page about this halvening event.
So, should I buy o sell my bitcoin?
Being honest this a good time to buy bitcoins, let me explain to you why:
Predictions say there are two ways, bitcoin will go down to 5700 USD or up 19000 USD. This is a good time to buy.
However, I suggest you only buy until May 15th because the bitcoin halving may produce a decrease in the bitcoin price. So, be careful with your investment.
All the evidence says something good is going to happen, what do you think?