Bitcoin Halving is the number of coins, you receive, if you’re a bitcoin miner, for adding transactions to your blockchain. It is a process that happens once in four years, like a leap year. Halving has a considerable impact on the future of bitcoin. The Bitcoin Halving for 2020 happened on 11 May 2020, and previous bitcoin halving have increased bitcoin’s value, often meteorically, over the last years, the last one being between 2016 and 2017.
Now, experts, economists and bitcoin owners are looking at the next bullroom event that would arise, after this halving. The reason they’re looking forward to a meteoric rise is simple. As the mining activity is reduced, and as fewer bitcoins are mined, year after year, the ones already in existence, their value increases. It is a simple game of increase in demand, and reduced supply. Indeed, all financial investments depend on a complex game between demand and supply.
The reward, which is essentially Bitcoin halving, is the transactional reward cut in two. It also cuts in half Bitcoin’s inflation rate, and also determines the rate at which new bitcoins and their rate at which it enters circulation. The earlier two halving events have resulted with higher prices, and higher rewards. Crypto experts think this halving would have better impact, for now central banks are trying to create new money. We’re in the middle of a financial crisis, and the halving only situates bitcoin, and reveals its potential to be a suitable ledge against inflation in the coming years. It should be a boon to global economy, and the halving paves ways for it.
As professional investors are looking for alternative ways to invest their money, it is predicted that they’d most likely invest more and more in bitcoin. Institutional investment entering the bitcoin space can happen in two ways, however. First, they can either directly buy bitcoin, increasing its value and monetary profit. Second, they can invest in stock of trust companies that invest in bitcoins. Though indirect, this sort of investment still counts.
A surge in bitcoin price and value, following the bitcoin halving, will led to increased number of new bitcoin investors and the arrival would be quite a spectacle of sorts! The crypto space also did not see a lot of investors in the past, because people found this cryptographic key system with which it exists, extremely complex. It is user-friendly only after you know how it works, and in the absence of proper knowledge or idea behind the mechanisms, it can become a confusing web. But more and more websites and legitimate companies are coming to the surface, which are making trading, mining and bitcoin exchanges extremely easy. Whereas most financial markets in the world are crashing, following the bitcoin halving, the bitcoin market is skyrocketing and it is absolutely perfect to enter the market and reap its benefits with trading platforms like bitcoin supreme app.
Until the last bitcoin mine is mined, you still have ample chances to be a part of this global economic revolution and earn your own wealth! The next bitcoin halving is supposed to be happening in 2024, and the world would have changed a lot more by then. The smart folks would not wait until the next halving to reap its benefits, as after that halving, they’d be able to sell and make more profits if they invest now and enter the market. By then, they’ll have the required experience to trade and mine, and they would have learned a great deal by trial and error.
So, when the halving happened in May, 2020, the number of bitcoins dropped from 12.5 to 6.5. As the supply gets less, but the demand remains the same, in the circulation, the price of BTC shoots up. Halving happens every four years, or after every 210, 000 blocks have been mined. The supply schedule of bitcoin, unlike other digital assets, are set in stone. So, when all the bitcoins have been mined, no more of it would be mined.
Bitcoin is written into code, and shared in the network. It has a fixed supply schedule, as well as, a very predictable inflation rate. So, if you do your homework, and background research, bitcoin won’t betray you and you’d have numerous profits to make. Bitcoin has several rags to riches stories. The block reward is programmed to decrease over time, so the sooner you invest, the better and more chances for you to make it big. If used correctly, Bitcoins would reduce the powers central bank have over economies, people and societies. By making it decentralized, bitcoin creators, anonymous whoever they are, have challenged the ways in which societies operate. The first halving had happened in 2012, and nobody knew what would happen to a volatile market. Luckily, prices began going up shortly after. The second saw many speculations, and also had a boom. The 2020 one has been the most anticipated one and can change the world!