The next Bitcoin halving is almost here. The event is set to occur in the mid of May 2020 and this will likely have a huge impact on the economics of Bitcoin mining as well as the overall crypto market. In mid-May, a Bitcoin halving happens, the block rewards will drop by half, from 12.5 to 6.25 BTC.
It is a milestone and it happens every four years or every 210,000 blocks. To date, Bitcoin has undergone two halvings (in 2012 and 2016), and we are quickly approaching the third.
In this article, I am going to explain everything you need to know about the upcoming Bitcoin Halving- what will happen in May 2020, what previous halvings have looked like, and how this halving will affect the BTC market according to the experts? Let’s take a look.
But, before moving further, for those trying to understand this complex topic, Bitzuri offers the following explainer of Bitcoin halving.
What is Bitcoin Halving?
New Bitcoins enter the circulation as block rewards, produced by miners who use supercomputers with specialized hardware systems to earn or mine them.
Every four years or 210,000 blocks, the total number of Bitcoin that miners can potentially win is halved. This process started in 2009, where 50 coins were mined every 10 minutes. Two halvings later, 12.5 BTC is currently being dispensed every 10 minutes.
As per the crypto experts, the process will end with a total of 21 million coins, probably in the year 2140.
The effect of Bitcoin Halving on Bitcoin Price
As the supply of Bitcoin is limited in the current marketplace, many believe that the price of BTC will surge due to Bitcoin scarcity. The previous record of Bitcoin halving showed a strong connection between halving and price.
Bitcoin price in 2012 halving day: $11
Price rose to $1100 within the next year.
Bitcoin price in 2016 halving day: $600
Price took a huge jump and went to $20,000 in the next year.
What the experts think will happen
Experts are not sure that the market will follow the previous trends, especially after seeing the current pandemic situation. Some experts believe that the price surge has already happened- as the Bitcoin took a jump from $3,600 to $7,000 and according to them, the market won’t react much to the halving. But, there are some crypto enthusiasts who have speculated that the upcoming Bitcoin halving will increase Bitcoin price up to 10 times, which will be around $100K. So, there are mixed opinions of crypto experts.
There are a lot of eyes on the Bitcoin market right now because people are facing a financial crisis and planning to invest in the crypto sphere to buy and sell crypto currency and earn huge capital.
If you want to tap into the cryptocurrency market, the smartest way to do is by using the best fiat to cryptocurrency exchange, as here you can buy BTC in exchange for USD, EURO, and KES. So, invest today and ripe the benefit of this year’s Bitcoin halving.