It’s pretty common knowledge that we’re expecting the Bitcoin halving to happen in May 2020. However, according to new reports, it may occur sooner.
A rapidly increasing hash rate combined with recent adjustments to mining difficulty means that miners will solve the remaining blocks out of the 210,000 needed for the halving to take place, sooner than initially anticipated. So, is the Bitcoin halving closer than we think? Let’s take a look.
What is Bitcoin Halving?
A Bitcoin halving is an event that occurs on the blockchain every 210,000 blocks or every 4 years. Basically, it’s when the reward for validating blocks is cut in half (for miners), and when the number of Bitcoins mined per day is halved. The inflation rate and hash rate are also affected in a similar way.
According to eToro, “a Bitcoin halving means that the rewards that Bitcoin miners receive for validating transactions are reduced by 50%. So, after the last halving event in 2016, the blockchain went from mining 3600 BTC per day to mining 1800 BTC. The Bitcoin halving date scheduled for May 2020, only 900 BTC will be mined a day.”
There’s also a level of excitement surrounding halvings, largely due to the fact that they’ve historically signaled a bull run. The 2012 halving brought on the bull run in 2013, and 2016 heralded the historic bull run that would culminate in Bitcoin reaching its an all-time high in December 2017.
Halvings will happen until the last block on the network is mined. This should only happen in 2140, at which point miners will have to survive on transaction fees rather than the BTC reward.
The hash rate and difficulty by design
Satoshi Nakamoto designed the Bitcoin blockchain so that new blocks can only be added every 10 minutes. However, he took into account the fact that, as more miners joined the network, the time taken to discover blocks would decrease. As a result, he added automatic adjustments to the mining difficulty level so that it would be harder to guess a hash with more miners competing.
Fewer miners mean that blocks are relatively easy to find, but as more join, the algorithm’s difficulty surges. However, Bitcoin miners are currently adding so much hash power to the blockchain that the algorithm simply can’t keep up. As a result, blocks are being added to the blockchain in less than 10 minutes.
How does this affect the halving?
Is the Bitcoin halving closer than we think? Miners are essentially speeding towards the halving process faster than expected. Most halving countdowns place the event during mid- to late-May, but the hash rate is so fast that it could happen much sooner.
The network’s hash rate hit an all-time high on 19 January. With miners continuing to increase the hash rate, some analysts estimate that the halving will take place on 3 May, while others are arguing that the end of April may be a more accurate date for the event to take place.
At the rate we are going with difficulty increasing 5% and hashpower reaching new ATH, #bitcoin halving might just happend end of April. 🚀
— A v B (@ArminVanBitcoin) January 30, 2020
Ultimately, we could see the Bitcoin halving happening sooner than we initially thought. You might want to get on the BTC trading train
Is the Bitcoin Halving is around the corner
Is the Bitcoin halving closer than we think? Quite possibly. So it’s probably a good time to start stacking Sats. With the event inching nearer and nearer, the Bitcoin markets are hotting up. Whether it happens in April or late-May, there’s one thing that’s certain – this halving could be the most monumental event in Bitcoin history.