What do you expect from the next Bitcoin Halving event that will take place in May 2020? In fact, this is one of the biggest concerns in the mind of every Bitcoin trader. However, this event will have a positive impact on the price of Bitcoin, because the supply of Bitcoins reduces in Bitcoin halving.
As a result, there will be less bitcoin on the market if the demand is high, which will eventually increase the price. In 2020, the number of bitcoin circulations for every 10 minutes will be reduced from 12.5 to 6.5. As in past data, this event has always had a positive effect and the market has always continued to move upward before and after the event.
Bitcoin Halving is Really Important
This is an important event for Bitcoin traders and miners that happens every four years. In this event, the number of Bitcoin blocks generated is halved. This means that bitcoin miners get 50 percent less bitcoin to validate transactions. As a result, the availability of Bitcoins decreases, and this can be a possible indicator of a rise in the price of Bitcoin if demand remains strong.
Therefore, bitcoin halving is a good opportunity for traders as the market follows a bull’s trend before and after this case. You will find the previous data from bitcoinscircuit.com showing the effect of the event on the Bitcoin price. This event occurs until the 21 million bitcoins have been created.
Bitcoin Block Rewards and its Significance
Bitcoin block reward is the most important thing in the halving event. The bitcoin or any other cryptocurrencies operates within the blockchain network. The blockchain network offers for solving computational problems to bitcoin miners. When a miner solves the problems successfully, the blockchain network rewards new bitcoins to the miner. Now let us understand about bitcoin block in detail.
Bitcoin blocks store transaction information when a user sends a bitcoin to another user. Here, a bitcoin miner gets a reward for mining new blocks on the blockchain network. Initially, the reward for each bitcoin block was 50 BTC. And the block reward gets halved after the total 21 million blocks discovered within the blockchain network, which takes about 4 years. Following two bitcoin halving, the block reward was reduced to 12.5 BTC and in 2020 the block reward will be 6.5 BTC. This halving event will continue, and after 64 Bitcoin halving events, the block reward will become zero.
Effect of halving on bitcoin’s price
Everybody assumes that after every halving, the price of bitcoin is going to go up. In reality, that’s not the case, nobody knows what exactly will happen of Bitcoin price after the event. However, many people predict that the price may rise by looking at past data. There are many reasons for the rise in prices due to the event.
One of them is a decrease in the supply of Bitcoins, so whether demand stays the same or rises, there is a possibility that the price of Bitcoin will rise. Another possible reason may be that many traders are buying up during the event, expecting that the price is going to rise and that it will give huge returns.
The last two Bitcoin halving events had created the all-time high price of Bitcoin. However, due to the coronavirus pandemic, the value of Bitcoin has gone down in 2020. As a result, this was the worst market crash in the digital currency market. That’s why many people are skeptical about the price of Bitcoin during the bitcoin halving event. However, many cryptocurrency experts have a positive view of the upcoming event.