Sometimes jokingly called it “shelving”, a major phenomenon for Bitcoin, the world’s leading cryptocurrency.
- When does halving occur?
- What is bitcoin halving?
- Why does it matter?
- The U.S. dollar and bitcoin.
When Does It Happen?
When a block will cut the reward for mining, there is no hard date for it; It depends on when the 210,000th block has been mined since the last halt. It will be in May 2020, he said, with estimates between May 11 and May 18.
What Is Bitcoin Halving?
At its simplest, bitcoin stagnation occurs when the pace of new bitcoin creation is cut in half, which occurs every four years. In May 2020, Bitcoin Minors will go from earning 12.5 bitcoins, for which the units, abbreviated as BTC, are equal to 6.25 BTC per block.
After successfully mining a block, the miners are rewarded with newly created bitcoins. This process happens about every 10 minutes, ”says Marcus Swanepoel, CEO of Luno, a bitcoin storage, exchange and learning company.
When bitcoin was first released in 2009, the reward was 50 BTC per block. Halwings are programmed to mine every 210,000 blocks, says Swanpol, which takes about four years.
In 2012 the first bitcoin halting, the reward for mining of blocks ranging from 50 BTC to 25 BTC decreased. In 2016, the halting event again cut awards to 12.5 bitcoins per block mined, and when the 2020 incarnation arrives, just 6.25 new BTCs will be created with each new block mined.
Why Does It Matter?
During the 11-year-old lifetime of bitcoin, Alex Edelman, CEO of the first bitcoin award application and co-founder of Lolly, says, “The last two have been a halt.” “The first was in 2012 and the price of bitcoin rose from $ 12 to over $ 650. After the second stop in July 2016, the price also accelerated and reached $ 20,000 at the end of 2017.” However, there were other factors at play: an increase in cryptocurrency and news coverage of bitcoin, a definite fascination with digital property’s benami assets, and a slowly growing list of use cases for currency in the real world. If one puts any stock in the value of history, the bitcoin halt of past years should be seen as a long-term bullish catalyst for the price of bitcoin.
The U.S. Dollar and Bitcoin
The days of free-flow bitcoin are gone. All “easy” BTCs have been mined; Of the 21 million bitcoins that could ever exist, 18.3 million, or more than 87%, have already been mined and are in circulation. Currently, about 1,800 new bitcoins are mined and entered into digital circulation each day, a number that will soon drop. About 900 a day, all things being equal
It is serious that the first truly mainstream aftermath of bitcoin should occur in 2020, a year already seen in the US, which suddenly and unprecedentedly boosts its money supply, bringing the current economic crisis. Prints over $ 2 trillion to take away.
Finally, countries that misuse the power to print fight money run the long-term risk of hyperinflation.
On the other hand, bitcoin is fundamentally deflationary. This has been the crux of the bull thesis for bitcoin since the beginning: this decentralized cryptocurrency cannot be printed in obscurity by governments and their central banks and the final supply is 100% known.