To understand what is bitcoin halving 2020, we must first know what is Bitcoin Halving? Below is Bitcoin halving clarified
Table of Contents
- What is the meaning of Bitcoin Halving?
- How long does it take for Bitcoin crypto to halve?
- What is Bitcoin Halving 2020? Or When the next Bitcoin halving will be taking place?
- How much Bitcoin miners will get after the next halving?
- Frequently Asked Questions
- Will the Bitcoin price change after Bitcoin halving 2020?
- How can I trade bitcoin halving 2020?
- Can I make money by halving BTC?
- How often is Bitcoin halving occurring?
- Will the mining of Bitcoin crypto Ever End?
- How many Bitcoins are left to mine?
- What is a Block reward for Bitcoin miners?
- Will Bitcoin miners continue to be interested in mining, even if their reward is halved after Bitcoin halving 2020?
- Can Bitcoin Survive Without Miners?
- How many Bitcoin cryptos are lost?
- What happens when the last bitcoin cryptocurrency is mined?
- Who operates the Bitcoin network?
What is the meaning of Bitcoin Halving?
Bitcoin halving is described as an event in which the rate at which new bitcoins are created halves. It occurs every four years.
As many know, the Bitcoin cryptocurrency (BTC) supply is limited. As soon as 21 million coins are produced, the network will no longer produce anymore.
This is one of the main reasons why Bitcoin cryptocurrency is often referred to as “digital gold”
Just like yellow metal, there is only a restricted amount worldwide, and one day everything will have been derived completely and there will be no Bitcoin cryptocurrency left to mine
There are currently around 18 million BTC in circulation, which is approximately 85% of the total circulation supply. However, this does not mean that the Bitcoin crypto will soon reach its ends.
The reason for this is the protocol encoded in the bitcoin blockchain right from the start
After Every 210,000 blocks are mined called Bitcoin halving, the production of new coins becomes more difficult
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Just like gold mining where discovering new deposits over time becomes more challenging.
In particular, the protocol cuts the block reward in half every time bitcoin halving occurs, miners receive 50% less BTC forever verified transaction.
If not interested in reading, you may watch a video
Bitcoin halving explained, Source Youtube: 99Bitcoins
How long does it take for Bitcoin crypto to halve?
Since an average of 6 blocks is found within an hour and the halving occurs once every 210,000 blocks are mined, so by this calculation halving takes place every 4 years.
This fundamentally means that mining wages become 50% lower than before.
For example, if every miner receives 12.5 bitcoins to solve a block, they will only receive 6.25 bitcoin cryptocurrency after the next halving event and so on.
Of course, the fact that 21 million bitcoins have been made does not mean that 21 million bitcoins can be spent.
You have to take into account that many lost bitcoins will never be retrieved and also the generated bitcoin cryptocurrency has to be mined over time to utilize
What is Bitcoin Halving 2020? Or When the next Bitcoin halving will be taking place?
So now as the concept of bitcoin halving is clear let’s have a look at Bitcoin Halving 2020.
The next Bitcoin halving is assumed to take place in the week of May 18, 2020 when the number of blocks reaches 630,000.
The block reward will drops from 12.5 to 6.25 bitcoins.
The specific date of the halving is not yet known because the time to generate new blocks varies.
The network calculates an average of one block every ten minutes. The average date can be 18th May 2020
Bitcoin Halving dates history
|Main Event||Dates||Block #||Block Reward|
|Bitcoin launches||Jan 3, 2009||0 (genesis block)||50 new Bitcoin|
|Bitcoin halving 2012||Nov 28, 2012||210,000||25 new Bitcoin|
|Bitcoin halving 2016||July 9, 2016||420,000||12.5 new Bitcoin|
|Bitcoin halving 2020||May 18, 2020, Expected||630,000||6.25 new Bitcoin|
|Bitcoin halving 2024||2024 Expected||740,000||3.125 new Bitcoin|
|Bitcoin halving 2025||2028 Expected||850,000||1.5625 new Bitcoin|
How much Bitcoin miners will get after the next halving?
Each new block makes 6.25 BTC. In the beginning, the reward was eight times as high.
When Bitcoin hit the market in 2009, the miners received 50 BTC per block.
A total of 10,500,000 BTC was formed before the next halving took place in November 2012, when miners received 25 BTC for each block.
It may seem like an overly generous bonus of over $ 365,000 per block based on the current value
But the network has only just started to progress and, no one knew for sure whether people would still believe the concept worthy to invest their computing power in the Bitcoin blockchain to keep it alive.
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Another factor to consider is that the all-time high for that period was $ 31 per BTC in June 2011, but the bubble burst later and bitcoin was back at $ 2 before year-end.
Although, mining eventually turned out to be much more profitable for those who started early
This is a major reason why Bitcoin critics call it the Ponzi program.
The second bitcoin halving took place on July 6, 2016, when block number 420,000 was created and miners started collecting 12.5 BTC for each new block, which is the current rate.
The third halving will halve this rate again, decreasing the block reward to just 6.25 BTC, or about $ 45,000, given the current market price.
Bitcoin halving price chart
Frequently Asked Questions
Will the Bitcoin price change after Bitcoin halving 2020?
Bitcoin cryptocurrency is currently displaying a 3.88% inflation rate and miners are dumping 1800 of Bitcoin Cryptocurrency on daily basis
After the halving, we will drop to under 2% inflation and will only be able to buy 900 new BTC per day
which may lead to an uptick in price if the demand for Bitcoin cryptocurrency persisted the same as the supply will decrease to half after Bitcoin halving 2020.
In the past, the price rose after halving but conclusively depends on the relationship between supply and demand.
In essence, halving Bitcoin cryptocurrency will reduce the BTC supply, making assets scarcer.
If there is demand, the price is likely to rise.
There are also some historical precedents. On November 28, 2012, the day of Bitcoin’s first halving, the price of the Bitcoin cryptocurrency rose from $ 11 to $ 12 and continued to build over the next year, reaching $ 1038 on November 28, 2013.
About four years later, a month before the second halving, the Bitcoin price reflected a similar bullish pattern.
It rose from $ 576 on June 9 to $ 650 on July 9, 2016
The day the block’s reward was cut in half for the second time in the asset’s history.
BTC continued to accelerate next year and was trading at $ 2526 on July 9, 2017.
Will it be the same this time? The industry has evolved dramatically in the past four years as cryptocurrencies and especially Bitcoin cryptocurrency have become an imperative part of mainstream news.
Still, some people may be motivated to take the gamble, especially given the previous patterns that have been announced concerning Bitcoin halving.
If history repeats itself and bitcoin prices rise in April 2020, more traders may buy the asset for fear of missing it, arousing demand and ultimately price.
How can I trade bitcoin halving 2020?
The easiest way is to buy Bitcoin Cryptocurrency is directly through an exchange like Binance exchange or any other prominent crypto exchange.
If you choose this choice, you will need to set up an Exchange account
Any profits would also be taxable in the usual way.
You can buy BTC before a month or two before halving and if the price begins to increase you can take profits but if vice versa you must place a stop loss to cut your losses
Can I make money by halving BTC?
Yes, it will be probable to make money with the BTC halving by speculating on Bitcoin’s price moves in the weeks and months connected with the event.
However, it is important to learn that all forms of trading involve risks.
So while there are chances of winning, you should never risk more than you can afford to lose.
How often is Bitcoin halving occurring?
The halving takes place at interims of 210,000 blocks, which is the case approximately every four years.
Bitcoin miners currently receive 12.5 Bitcoin cryptocurrency if they successfully mine a block.
By the end of May 2020, they will instead earn only 6.25 BTC
Will the mining of Bitcoin crypto Ever End?
Mining will be required as long as Bitcoin cryptocurrency exists.
If all Bitcoin cryptocurrency is mined completely then miners will be remunerated through transaction fees
How many Bitcoins are left to mine?
According to data from Blockchain.info there are 21 million bitcoin in total supply and only 4 million are left to mine
Out of 21 million 17 million bitcoin, cryptocurrency have been mined
What is a Block reward for Bitcoin miners?
The amount of BTC a miner takes for each new block he adds to the blockchain.
To illustrate this concept in more detail, we briefly return to the roots of Bitcoin cryptocurrency – the blockchain.
In the simplest sense, a blockchain is a digital general ledger, in which information about its transactions is stored in blocks of approximately 1 MB each.
For example, if Person A sends Bitcoin to Person B, that transaction is saved in a block along with about 500 other transactions that took place at about the same time.
A block reward is the amount of cryptocurrency, miners win when they successfully mine a new block by solving highly complex math problems with their mining hardware.
It is a prize for their hard work.
Will Bitcoin miners continue to be interested in mining, even if their reward is halved after Bitcoin halving 2020?
Some smaller players may be forced to leave the game or at least upgrade their hardware.
At this point, most of Bitcoin’s mining is done by giants like Bitmain
The China-based company that was worth $ 12 billion in 2019, application-specific integrated circuits that are costly and demand a lot of energy and technical skills.
If the block reward becomes less relevant, mining facilities that hardly cover production costs have to flee the market.
There will still be companies willing to mine Bitcoin cryptocurrency at the reduced rate, but this could make the market less decentralized.
Nonetheless, new and more effective ways of extracting BTC could emerge that may allow smaller companies to participate.
Can Bitcoin Survive Without Miners?
Without miners, the Bitcoin cryptocurrency blockchain will not remain functional
How many Bitcoin cryptos are lost?
Chainalysis, a research company that scrutinizes activity in various cryptocurrency markets, predicts that 17 to 23 percent of all bitcoin cryptocurrency has been lost and will never be recovered
What happens when the last bitcoin cryptocurrency is mined?
When all of BTC will be mined these transaction fees should become so worthy that they will encourage miners to continue mining even if they don’t receive a mining block reward.
Bitcoin cryptocurrency miners will still be paid by transactions fees
Who operates the Bitcoin network?
Nobody owns the Bitcoin cryptocurrency network. Bitcoin is controlled by all Bitcoin users around the world.
As developers update the software, they cannot force the Bitcoin protocol to change because all users are free to choose which software and version to apply.