What is Bitcoin Halving and When?
In a ten minute interval, the Bitcoin network issues new Bitcoin. 50 BTCs created and entered into circulation every ten minutes for the initial 4 years of the first coin’s existence.
The number of Bitcoin the network creates reduced by 50% every four years. This occurrence is called “block halving” or “halvening.”
Bitcoin Halving happened in 2012 and 2016. The third will take place on May 13, 2020; 5 days from the time of this publication. Bitcoin’s reduction for the three halvings are as follow: from 50 to 25, 25 to 12.5 and 12.5 to 6.25.
What BTC Block Halving Means to Traders & Cryptocurrency Market?
The amount of newly mined bitcoin per block that goes into circulation reduced by 50% during halving.
Less supply plus increased demand often result in price increase. In Bitcoin’s case, the demand only needs to remain steady to experience halving price surge.
The following graph outlines the first two Bitcoin halvings for 2012 and 2016. The green lines that sit vertically represent the price surges.
Is May 11 Bitcoin Halving Creating False Hope?
The May 11 Bitcoin halving is certainly creating false hope for “get-rich-quick” BTC traders. That’s according to crypto whale with Twitter handle, Joe007.
There is no hurry, let the beautiful dream of magic halvening give hope to get-rich-quick wannabes for a spell.
— ʲᵒᵉ (@J0E007) May 4, 2020
Joe007 insisted that the idea Bitcoin’s price will moon after block rewards lower to 6.25 BTC from 12.50 per block is exaggerated. He said halving is already factored into Bitcoin’s current price.
We have acknowledge, however, that BTC’s price surged more than 1,000% months after the 2012 and 2016 halvings.
What are your thoughts… Do you think Joe007 is right or the May 13 Bitcoin halving will increase BTC’s price further?
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.