Halving bitcoin. What is it and why is it needed

The terrible and incomprehensible word "halving" has recently been seen by many people. What is halving? How does it threaten the price of bitcoin? What will happen next with cryptocurrency? Read about all this in our article.

Entry


On May 11, 2020, the third in the history of Halving took place on the Bitcoin network at block # 630000. The indicated block, the reward for which was 6.25 BTC, got a pool called “AntPool”.

For those who do not know what Bitcoin is, we have prepared the following articles:

According to popular sources, many miners capitulated from the market. How does this threaten an ordinary investor? Presumably, the price should go down, but knowing the "logic" of the Bitcoin exchange rate, it is far from the fact that this will happen. At the time of writing, there is a positive trend in the growth rate.

What is halving and why is it needed


As you know, to verify transactions and solving blockchain network tasks, technical capacities are used in the form of computers, mining equipment, etc., resulting in a new data block in the network. This action is the only way to issue (limit) Bitcoin, for which rewards are accrued.

Halving is an event when the reward for mining new blocks to miners is halved.

The creator of the most popular cryptocurrency, Satoshi Nakamoto, programmatically laid out halvings on the Bitcoin network every 210 blocks, that is, every 000 years. This event occurs automatically without human intervention. Presumably in 4 the last bitcoin will be mined, that is, after 2140 halving.

Halving will create an artificial deficit of bitcoin, which will help curb inflation, as well as increase the demand for coins.

Halving History


We suggest you restore the chronology of events from past halvings. The first halving took place on November 28, 2012, and the second on July 9, 2016. Since then, the price of bitcoin has increased significantly.

date
Block reward
November 28 2012
25 BTC
July 9 2016
12.5 BTC
12 May 2020
6.25 BTC

November 28 2012

On the date of the first bitcoin halving, the price was $ 12 per coin. This was the first halving and special attention was riveted to it, since many did not know what to expect in the future.

July 9 2016

After the second halving, there was a real “boom” in the cryptocurrency market. In addition to the course of bitcoin, courses of a large number of altcoins have gone up. At the time of the second halving, the price for one coin was $ 650.

12 May 2020

The third halving occurred recently and we have not yet managed to appreciate its full scope. Based on the last two halving, we can conclude that within one year we will see a rapid increase in the price of bitcoin. As of May 12, one bitcoin is valued at $ 8.

Conclusion


Our opinion remains the same: Bitcoin will be popularized. The halving mechanism will prevent coin inflation, thanks to similar restrictions.

Unfortunately, it is impossible to predict which direction the course will go, but based on the latest halving, you can understand that significant changes in the price of a coin are expected in the next few years. Up or down - time will tell.

The next halving will happen in 2024. We look forward to developments in the cryptocurrency market in the near future.

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  1. Anzhel
    03.10.2020 14:51
    #20
    Excellent article, I learned what halving is
  2. BandiCD
    21.08.2020 22:45
    #19
    Interesting article)
  3. mirov84
    29.06.2020 17:04
    #18
    Bloomberg Intelligence Commodity Chief Strategist McGlone expects the first cryptocurrency price spike to resistance at $ 13.
  4. mirov84
    27.06.2020 09:17
    #17
    Buying Bitcoin below the $ 10K mark is currently the best way to not fall into the bottom with deposits in the cryptocurrency!
  5. mirov84
    23.06.2020 22:27
    #16
    Is it worth investing in Bitcoin or Ethereum in 2020?
    1. richmonkey_support
      25.06.2020 13:11
      #15
      No one will give you a clear answer. After halving bitcoin, growth has always been observed and no one knows how it will be this time. Personally, we see the prospect both in bitcoin and in ethereum and believe that yes, it’s worth
      1. mirov84
        25.06.2020 16:11
        #14
        Yes, I also think the future is not defined yet for these crypto bubbles, as it were!
  6. Robin2020
    21.06.2020 12:39
    #13
    Thank you for the article!
  7. mirov84
    14.06.2020 20:29
    #12
    It is possible a 40% drop is quite likely, this has happened before, will happen in the future, ”the analyst noted.
    СryptodonAlt emphasized that even during the growth of the Bitcoin exchange rate in 2015-2017, it sagged significantly before entering a bullish trend!
  8. mirov84
    13.06.2020 11:46
    #11
    According to The Economic Times, Indian authorities have returned to a bill providing for a complete ban on the ownership and operation of bitcoins and cryptocurrencies.
  9. Lumin
    12.06.2020 18:30
    #10
    Thanks for the informative article)
  10. mirov84
    10.06.2020 08:54
    #9
    As expected, the whales are leaving Bitcoin and it fell after last month, due to a halving, several small mining enterprises turned off their equipment.