On May 9, 2020, the 630,000th Bitcoin block will be mined and passed this cap, mining rewards will be halved to reach 6.25 BTC per resolved block.
Miners will have to redouble their efforts to undermine the next block and speculation on the Bitcoin price after this 3rd Halving will become ubiquitous in the markets.
Bitcoin Halving what is it ?
Every four years, Bitcoin is subject to event called Bitcoin Halving or halving bonus bitcoin. This event initialy include in the Bitcoin whitepaper consist in halving rewards in Bitcoins mining.
This happened for the first time in 2012 and again in 2016.
Similarly, this will happen again in 2020 and 2024.
When bitcoin started, the reward block was 50 bitcoins every 10 minutes.
The Bitcoin code includes a statement that indicates that after 210,000 blocks (or about four years, at a rate of 10 minutes per block), this reward should be halved.
After the last two Bitcoin halving, the current block reward is now 12.5 BTC Bitcoins. By on May 9, 2020, it will fall to 6.25 BTC and so on.
In terms of past growth performance, halving shows generally positive trends for the portfolio.
The debates are about when the effects of halving come in the marketplace. Are they tenfold in the time of the last mined bitcoin before the halving, or does it take all its meaning after the past event.
On this date of the third Bitcoin halving is fast approaching, the wildest debates and beliefs are only making Bitcoin talk.
Bitcoin was created in 2009, since we have known 2 halving.
The first halving on November 28, 2012, and the second halving on July 9, 2016.
During the 2012 halving, there was a 342% increase in the price of bitcoin one year before the event. Then followed by an exponential gain of 7976% a year later.
And as for the 2nd halving, the same scenario was observed with a gain of 112% the year before the halving and an increase of 2867% the after year.
The opinions being very divided on the effects of this last halving, difficult to predict what will be the price of Bitcoin within 1 year.
One thing is sure, the market will again wobble by this event.
Keep an eye on your wallets !