As bitcoin continues to rule the crypto market, many experts are already speculating about the next significant thing – bitcoin halving 2020 or how halving will affect the bitcoin price.
Upcoming bitcoin halving to occur in May 2020 (most probably the second week of the month) with a new Bitcoin price anticipated to follow the halving event. Besides likely BTC price change, there is surely be a huge shakeup in the industry of mining that will leave only powerful in business. The people’s attitude towards Bitcoin over a decade ago is quite much unlike what is obtainable now.
Bitcoin halving explained
Bitcoin halving occurs once every 4 years. At the end of it, bitcoin faces a reduce b half in its generation rate. As distressing as it sounds, bitcoin was not designed for an indefinite supply. Instead, the moment the last Bitcoin is generated, bringing its count to 21 million, no more bitcoin will be created by the network.
As of now, we have gathered about 85 percent of the total bitcoin cap at 18 million bitcoins. Although this is quite a substantial amount, the end isn’t near yet. This count will continue to rise and alongside it is another even that can’t be stopped – bitcoin halving. This happens after every 210,000 blocks that make the production of new coins even harder.
It means that the protocol instituted for carrying out bitcoin halving after specific requirements are met reduces the block reward in half. Well, the consequence of this event is mainly felt by miners who will start to get BTC with a 50 percent cut whenever a halving happens.
How Halving Affects the BTC Price?
Considering past events, bitcoin halving generally drives a surge in the price. However, in all, the supply/demand ratio plays the most important role in figuring out what becomes of its price. Considering the supply/demand ratio, after a successful halving, the dearth of the asset will rise. Currently, for there to be a rise in its price, there must be a huge demand for the asset.
The industry has seen a rise in activity in each thing associated with cryptocurrency for the last 4 years. Bitcoin has witnessed more media time and has even become an imperative component of several sectors. As its halving reaches, it is expected that lots of people will be taking opportunities with the asset with expectations of cashing out big as previous patterns have given away such to be a likelihood.
Therefore, if what happened to the BTC price, considering all past halvings, it manages to happen again, then we may yet see a mad rush by traders to buy the asset to be a part of its increasing price. It will trigger the rise in demand for the assent, which leads to the increment of BTC price.
That’s an overview of bitcoin halving 2020 and how halving is going to affect the BTC price.