The Bitcoin evolution
The halving
As Bitcoin ages, it is the system’s design to use the halving scheme to control the value of the digital asset on the market. What is halving? Halving is a periodic approach used by Bitcoin created to ensure that the release of Bitcoin onto the market through miners is moderated. Halving divides the reward that miners receive when they confirm transactions or a block on the Bitcoin block chain by two. As the demand of Bitcoin increases, it is only smart to control the supply so that the crypto currency does not become undervalued. This method has been applied by the network and its effect on the digital currency has been witnessed. Since there is limited amount of 21,000,000 Bitcoin in existence, 18,361,400+ have already been released leaving an approximate quantity o f 2,638,500- to be released as mining rewards.
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Coinmetrics logarithmic chart analyzing the price Bitcoin following halvings.
The halvings’ effect on the price of Bitcoin
Bitcoin saw a great surge in its price when the first halving occured on November 28th, 2012. This also halved the reward given to miners for each block they mined from 50 BTC to 25 BTC. The same effect happened in the Bitcoin market skyrocketing the price and increasing its value when the second halving occured on July 9th, 2016. The value of Bitcoin increased as the mining reward decreased from 25 BTC to 12.5 BTC. This reveals the pattern that shows the demand increasing as supply increases. The third halving, which is scheduled to happen on May 12th, 2020 is expected to increase the value of the crypto currency and investors, traders and holders alike have already started experiencing the real effect of this upcoming halving as the price of Bitcoin rose from about $8,949.93 to over $10,000.00, more than a $1000 increase. This effect has rippled throughout the crypto currency market as the total market capital has seen a dramatic increase by almost $13 billion. We are expected to see more progress in the coming week. Is there a better time to be a crypto investor?
The impression on other altcoins
Other altcoins(cryptocurrencies on the market apart from Bitcoin) have seen a positive incline on their prices as their values are somehow affected by the price of Bitcoin. One can look into and do some research on the current values of Bitcoin’s top competitors in the names of Ethereum(ETH), Litecoin(LTC) and Bitcoin cash(BCH). The future of the crypto economy is promising. Let’s keep our fingers crossed and expect the best out of the coming days.
P.S : Please do more research and find out more about crypto currencies if you’d want to invest in this business sector.
This market is still young and has a long road ahead of it. Happy investing.
