because many wonder what is bitcoin halving?

What will happen to that? Well, bitcoin halving is a mechanism that adjusts the production of miners' blocks and reduces the supply to half of the production, it happens every 4 years this Tuesday, May 12, the bitcoin halving will take place, bitcoin miners compete to manage to validate the transaction blocks of the cryptocurrency network and get their reward, and for this they must solve a complex mathematical problem through their powerful computers.

Why can it be key for those who own the cryptocurrency? Every 210,000 blocks generated (which takes about 4 years). After halving, the amount of bitcoins with which the miners are rewarded decreases.

Every 10 minutes a block of transactions is validated, and miners who put computers at the service of the network to secure it, currently receive 12.5 Bitcoins as a reward, but every 210,000 blocks that reward is reduced by half.

Now that after the halving the miners will earn half of the amount they earned in bitcoin, that is, they will go from 54,000 to 27,000 new bitcoins mined per month.

Here the law of supply and demand applies, by producing less bitcoin it is more difficult to obtain them since their price would logically increase, because although the miners earned less in bitcoin, surely according to experts they would earn the same amount or perhaps more in dollars, it is a process that exists from the very design of the cryptocurrency.

The first bitcoin halving was done in 2012, when the halving was done on November 26, a bitcoin was worth $ 11.50, and a few months later it was trading at the all-time high of $ 270.

The second halving was done in 2016, when the second bitcoin halving occurred, a bitcoin was at $ 658, and after a year and a half it hit a record high and exceeded $ 20,000.

Although analysts maintain that price corrections are not automatic and what matters is the trend that can be generated, so the price will have to be followed in the medium term.

Over the past few weeks, the price of bitcoin has been on the rise, especially as miners sold fewer cryptocurrencies as halving approaches, meaning they expect the price to rise after Tuesday.

Although, of course, different variables influence and it will be necessary to see how the conditions arising from an exceptional event such as the coronavirus pandemic impact this time.

Thanks for your attention.