Bitcoin Halving Event Due Mid-2020 as BTC Investors Speculate What the Price Will Be

This year has been good for Bitcoin traders as the leading crypto asset has made significant gains on the crypto markets. Bitcoin prices have surged to almost $14,000 this year, and over the last few days, the cryptocurrency's price has risen again.

Many cryptocurrencies have scheduled halving processes through which the rewards that the miners of the particular cryptocurrency receive are cut in half. The halving of rewards is done to decrease the crypto coin’s rate of issuance and provide a safeguard against possible inflation of the coin.

Bitcoin Halving

Bitcoin’s halving is due in 255 days, and many players in the Bitcoin community are looking forward to the event. The amount of rewards miners receive when they find a new block will be reduced by half. Historically, halving processes result in high volatility of the cryptocurrency in question, and Bitcoin traders will be looking forward to the digital asset’s price possibly surging again.

For Bitcoin, the halving of rewards is supposed to be executed after every 210,000 blocks. Satoshi Nakamoto established this protocol in the initial iteration of the cryptocurrency. Depending on how quick he blocks are being mined, this number of blocks is reached after about four years. This means that a block is found every ten minutes, and there are a total of 144 blocks found per day.

This rate of mining places the current rewards for Bitcoin mining at 12.5 BTC per block, and this equals 1,800 BTC per day issued as rewards to miners. This figure also includes transaction fees for the platform on which the Bitcoin is being mined. From around the 17th of May, 2020, Bitcoin miners will earn 6.25 BTC per block. The decrease in the supply of mining rewards will bring down the hashrate of the coin because old equipment used to mine the coin becomes less profitable.

Past Halving Events

The first halving event for Bitcoin took place on November 2012 when 210,000 blocks were reached. During that halving, rewards dropped from 50 BTC we block to 25 BTC. After this event, the price of the coin responded by going through a bear market for six months.

The second halving process was done on July 9, 2016, when blocks reached 420,000. During this halving, Bitcoin rewards were reduced to 12.5 BTC. The event had a similar effect on the market as that of the first halving event.

After both events, the price of Bitcoin fell significantly, but a bull market then followed them. During the bull market phase, the price of Bitcoin rose to new heights. When the 2020 halving occurs, historical data suggests that Bitcoin prices will fall and then rise significantly.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Ali Raza
Ali Raza
A freelance journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali's work has been published on a number of cryptocurrency publications.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,194FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Kraken Exchange Onboards Swiss Bank InCore to Help Euro Clients Buy Crypto With Fiat

Swiss Bank InCore has just become the first banking institution in the nation to provide banking services to Kraken crypto exchange. The deal, which was...

Bank Of Japan (BoJ) Launches ‘Technical' Study to Experimenting CBDCs

The race to launch a sovereign digital currency is heating up as Japan became the latest country to venture into a central bank digital...

This Top Coin, Being the Worst Performer of 2020, Is A Disappointment to the Crypto Market

The fourth-largest cryptocurrency by market cap is currently trading at $0.176 in green by 1.66%, like the majority of the market. With 8.61% losses In...

Cryptocurrency Payment Processor BitPay Finally Announces Support for SegWit

Bitpay, the crypto payment processing giant, has finally integrated the segregated witness (SegWit) protocol, a second layer scalable solution to make bitcoin processing cheaper....

Crypto Hardware Wallet Ledger: ‘Funds are Safe' After ‘BigSpender' Vulnerability Found

A vulnerability was recently discovered by ZenGo in popular cryptocurrency wallets Ledger, Edge, and BRD. Named BigSpender, the vulnerability could lead to a double-spend...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today