Bitcoin halving is one of the most popular topics these days. Do you confused about bitcoin halving? I will explain. keep reading.
I know why do you search for this keyword “Bitcoin halving”. It’s happening in MAY 2020. Of cause, this event happens once every 4 years which means the last halving event was 2016.
What is actually bitcoin halving? And what kind of opportunities you will have? Let’s find out.
Firstly, It is something like cutting 50% of miner’s reward which means after the bitcoin halving, miners will get only 50% of their current reward before the halving.
This will also be slowing down the mining process by 50%. Good news, right?
What are the opportunities you could have?
Think about this way. I already said cryptocurrencies have limited supply in previous posts. In that case, miners reward cutting 50%. What will happen? If you don’t understand, that means the rest bitcoins that still need to be mined, slowing down the mining process by 50%. if a miner mines 10 bitcoins daily, He will have 5bitcoins after the halving event.
This definitely could increase the price of a single bitcoin within months. Why? because of the demand.
What Is The Reason For Bitcoin Halving?
Mainly it was programmed to keep inflation under control. You know that the bitcoin supply is about 21 million. That is a hard limit.
Assume a successful block confirmation reward is 60 bitcoins in 2010. in 2012 when the first bitcoin halving is done the reward is half of the previous which is 30 bitcoins.
in 2016 it is dropped to 15 bitcoins. And now in 2020, it will down to 7.5 bitcoins for a successful block confirmation. This is the nature of bitcoin and it is originally programmed.
Talking about the competitiveness for mine bitcoins, Is getting higher and higher competition with this event.
With a less amount of bitcoins left to mine, and the bitcoin halving event is about to cut 50% off reward, Bitcoin mining will be super competitive for sure.
However, This could make a perfect opportunity for cryptocurrency investors and traders.
What Are The Opportunites?
I mentioned in my previous articles, changes in bitcoin price could affect the alternative coins.
Most of the time when bitcoin rises, Alternative coins also do. After the bitcoin halving event, if bitcoin starts bull market, the alternative coins might follow bitcoin. Not for 100% but will increase.
All you need to do is research for some perfect cryptocurrency projects and choose what is best for you. Follow my researching guides here.
Please, Don’t invest on your own. Take some time and research.
This could be the best opportunity. It depends on your choice and your research. Take your time.
Finally, Let me show the bitcoin reaction during passed halving events.
Do you excited about this event?
Willing to invest during this event?
Leave a comment down below. And share your personal opinions. That would also help other readers.