Bitcoin Halving 2020: Here is What You Need to Know
The situation concerning Bitcoin Halving
Much has been said about the Bitcoin halving event which is expected around the middle of next year.
The truth be told, many people don’t even understand what the halving even about to talk more about being prepared for it.
However, if there is an event that will have an impact on the crypto space next year it will be the halving event which many people are looking forward to before making any major moves in the crypto space.
What is the Bitcoin halving Event?
The Bitcoin halving event refers to the reduction by 50% the number of Bitcoins that miners receive for transaction confirmation on the Bitcoin blockchain as rewards. The previous halving events occurred on the 28th of November, 2012 and the 9th of July, 2016. The next halving event is scheduled to take place on May 20, 2020.
Before 9th July 2016, the average amount of rewards earned by Bitcoin block mined was around 25BTC, after that, it became 12.5 BTC and on May 20, 2020, it is going to come down to 6.25 BTC per block mined. This, of course, has many implications for anyone who is involved with the crypto space.
Miners are Going to Get Paid Less Rewards in Bitcoins
From the start, Bitcoin was meant to have a fixed supply.
As such, with every halving event, the number of rewards available will reduce by fifty percent until they come down to zero.
This, however, means a different scenario for Bitcoin prices.
Bitcoin prices are expected to go through the roof.
An exponential price increase in the price of Bitcoins is expected.
This is because there will be a higher demand for Bitcoins and lower supply.
As such, demand is expected to soar.
The bigger miners will stay in the game.
The smaller miners, on the other hand, may have to leave because fewer Bitcoins are available for mining rewards.
This points to the fact that there will be a limited number of Bitcoins in supply (21,000,000) until the Bitcoin community decides to change this via a hardfork.
However, for now, the Bitcoin prices are expected to go way higher than most people have ever expected them to during this period.
Prices are Going to Become Volatile Before Halving
Due to the expectations for the Bitcoin markets before halving, there will be an extremely choppy market for those who are involved in the Bitcoin space.
Due to these expectations, so many different activities will be ongoing with Bitcoins.
Some will be hoarding, others will be speculating while others will be looking to buy.
On the whole, the volatility will be an upwards volatility because most people will either be looking to hold or looking to invest in Bitcoin mining as it will become much more lucrative to mine Bitcoins due to the exponential price rise which will come.
On the whole, the Bitcoin halving event is easily the singular most important event within the cryptospace.
The question that remains, however, is if the halving event will lead to further adoption of cryptocurrencies by the global public.