A Comprehensive Guide to the Ins and Outs of Bitcoin Halving
summary
Bitcoin halving is an event that halves the rewards you get from mining new blocks. We suggest posting your event. Miners will hold 50% fewer Bitcoins for every transaction. The process of halving Bitcoin will occur once every four years, or approximately every 210,000 blocks until approximately 2140.
The next Bitcoin halving is scheduled to take place on May 18, 2020. The first Bitcoin was released in 2009 and the process has been run twice since then. This year’s halving marks the third to date, bringing the total number of blocks up to 630,000.
Impact of Bitcoin Halving
One important effect of Bitcoin halving is that Bitcoin rewards are cut. In 2016, the rewards associated with Bitcoin fell from 25 to 12.5. This caused the price of Bitcoin to rise from $576 to $650 just before the event. And the trend doesn’t seem to be stopping as prices continue to rise.
A similar pattern was recognized during the first halving in 2012. The rewards dropped from 50 to 25 and the price continued to rise, starting at $11 to $12 before being halved and reaching a peak of $1038 in 2013.
Bitcoin Trading in 2020
One question that arises here is who benefits from the Bitcoin halving process, or who even cares about it?
Most traders are those who are influenced by the Bitcoin halving process as well as the idea of a price increase. There are two main ways you can trade Bitcoin.
- To theorize the price of Bitcoin before and after the halving (using derivatives such as CFDs)
- Buy Bitcoin through an exchange.
Buying coins can be a risky business, but it is best to choose the first method. In fact, there are several ways to trade Bitcoin using derivatives such as CFDs.
- It allows traders to start a business without actually putting any money into their wallet. This means they trade risk-free and without an account.
- This allows you to make responsible guesses as to whether prices will rise or fall.
- You can easily top up your deposit, also known as margin, and gain greater exposure to the market. This is a kind of ecosystem where traders can earn higher returns with less investment.
conclusion
Bitcoin halving could be devastating, even fatal, in the sense that miners’ activities become obsolete and no longer profitable. The unprecedented costs associated with this will force miners to cease their activities entirely. What remains consistent over time is the total number of Bitcoins created. The software is designed to automatically balance the number of blocks mined. The sole purpose of the Bitcoin halving is to prevent people from saving and spending in a way that would revolutionize the way they transact.
We have tried to cover the topic thoroughly here. If you have any additional questions, suggestions, or require expertise related to Bitcoin halving, please feel free to contact us. info@cryptominerbros.com.
