What is Bitcoin Halving?
The Bitcoin Halving is a mechanism to reduce the mining reward for the miners to half thus to protect the value of Bitcoin. By reducing the supply in to the market, demand increases and thus Bitcoin price increases.
This deflationary protocol is pre-programmed into the Bitcoin blockchain by the cryptocurrency’s anonymous creator, Satoshi Nakamoto, to occur every 210,000 blocks on the Bitcoin blockchain (It happens approximately every 4 years).
Why Bitcoin halving happens?
Bitcoin halving is a way of using a synthetic form of inflation. There are only 21,000,000 Bitcoins in existence that can be mined in total. Bitcoin halving will cut the reward by half and reduces the supply, thus increases the price of the Bitcoin. Based on the past history of Bitcoin Halving events, the price of Bitcoin has significantly increased.
What was the Bitcoin price during the previous Bitcoin Halving?
Bitcoin Halving & Price Data:
|Halving||Time||Bitcoin Price Change|
|1st||Nov 2012||$11 to $1150|
|2nd||Jul 2016||$650 to $20000|
|3rd||May 2020||$3200 to TBD|