Bitcoin is the oldest and biggest cryptocurrency on the market. It helped to popularize the cryptocurrencies. Also, Bitcoin paved the way for other crypto-related projects as a lot of people learned about the crypto markets thanks to this crypto money.
Next year, Bitcoin’s “halving” will cut production of the oldest cryptocurrency by 50%. This event expected in May 2020, will influence cryptocurrency number one as well as crypto markets as a whole.
Bitcoin’s “halving” will reduce the number of new coins awarded to miners. These miners provide the global supply of the cryptocurrency by solving maths puzzles.
No one can influence this process. It’s a rule written into Bitcoin’s underlying code by pseudonymous creator Satoshi Nakamoto.
It is worth mentioning that halving takes place roughly every four years. This helps to control inflation as well to guarantee the scarcity of Bitcoin.
The market is worth about $120 billion. Moreover, every year Bitcoin worth several billion dollars are created as a result of crypto mining.
Bitcoin and crypto news on Thursday
Let’s have a look at how the “halving” affected its price several years ago.
For instance, if supply is cut and demand stays on the same level, the price will go up.
Bitcoin miners use high-spec computers to compete against other machines in the network. Based on current rates of block creation, the next halving will happen in May 2020. At the moment, Miners are rewarded with a set number of Bitcoin, which is 12.5. From May 2020, this number would fall to 6.25.
The first halving in history took place in November 2012, followed by second in July 2016, after the first halving price rose around by 80 times in one year.
Furthermore, the price increased four times after the second halving during the same period of time. It is hard to determine whether halving was the only factor or not.
Third, “halving” in the history of Bitcoin is an important event for the crypto miners, traders as well as owners or simply for crypto enthusiasts.