Gentlemen, ladies, get ready, because the moment we had all waited for has already arrived: Only 1 day is left for the Halving of Bitcoin. And everyone in the crypto world, we are aware of what will happen to the BTC blockchain after it. That is why at CryptoTendency we have prepared a special coverage of the event for our readers.
Halving, what is that?
However, if you are new to the crypto world, and haven’t paid attention to the news of the past few days, you might be wondering what Halving is. And above all, why do we all seem so excited about it? And, let’s face it, for someone who has no knowledge of cryptocurrencies, we must be a rather strange spectacle, celebrating the arrival of Halving as if it were Christmas.
In layman’s terms, Halving is a process that occurs on the Bitcoin blockchain every 210,000 mined blocks. It consists of a halving of the rewards received by cryptocurrency miners. Which decreases the expansion rate of the BTC money supply.
This process was designed by Satoshi Nakamoto already in the early days of Bitcoin’s creation. And it happens approximately every four years, this being therefore the third Halving in the history of BTC. The previous ones took place in 2012 and 2016 respectively. Although of course, cryptocurrencies that base their design on Bitcoin such as Bitcoin Cash have also suffered Halvings throughout these years.
“So basically crypto users are happy because they will receive less reward for the same work” Well … put like this certainly sounds strange, however members of the crypto community do not celebrate in themselves the reduction of Bitcoin’s rewards, but rather the effects this is expected to bring.
What will happen after this event?
Thus, the first expected effect after this Halving is a substantial increase in the price of Bitcoin. And this is due to a basic principle of economy: The higher the demand and the lower the supply, the price of goods tends to rise.
And as we mentioned in the previous section, Halving on the BTC Blockchain consists of reducing the rate of expansion of the cryptocurrency money supply. What makes crypto market analysts assume that in the face of this drop in supply, and with the same demand, the price of Bitcoin will grow.
This is exactly what happened in previous Bitcoin Halving. The last of them reaching the cryptocurrency around $ 20,000 per BTC. Generating great expectations in users, who expect history to repeat itself after this May 11.
Of course, the opposite is also possible, and the price of Bitcoin is not increasing or even decreasing. This will strongly affect all those who optimistically awaited Halving in the cryptocurrency. Initially scheduled for May 12 and advanced for May 11, thanks to an increase in the pace of mining, which caused the mining of the 210,000 block to be brought forward.
For this reason, and for the effects that could also have on miners receiving a lesser reward for their effort. Is that in CryptoTrend we have our countdown with only 1 day for the Halving of Bitcoin. And we prepare to analyze step by step all the incidents of this event for our readers.