Bitcoin (BTC) is rightfully considered the king of the cryptocurrency market, so the events taking place with the cryptocurrency have a great influence on the market and the cryptocurrency community.
We will examine in more detail what bitcoin halving is (halving the remuneration for the block mined by miners) and give several tables with a forecast of BTC prices in connection with the upcoming halving in 2020.
What is bitcoin halving?
Bitcoin halving is an event during which the reward provided to miners for maintaining the network is reduced by 50%. It occurs every 210,000 blocks (approximately every 4 years). Currently, the reward for the Bitcoin block is 12.5 BTC. After the next halving, the reward for each block mined will be 6.25 BTC.
This process protects the Bitcoin ecosystem from excessive inflation and allows you to maintain a deficit in the most popular crypto asset. Thus, bitcoin is more similar to gold than fiat currencies, because in contrast to them, gold reserves and the number of bitcoins remain predetermined. After each halving, it is becoming increasingly difficult to get another bitcoin.
As halvings are conducted, the last BTC reward for the mined block will appear by 2140.
When was the last bitcoin halving?
The last BTC halving occurred on July 9, 2016 at 420,000, when one BTC was valued at $ 657.61.
Given the fact that the price of BTC is currently fluctuating around $ 10,000, it can be calculated that after the last halving, the price of bitcoin increased by 1485.84%.
Bitcoin halving charts and dates
To explain the significance of the upcoming event, look at the chart with the details of the halving and a detailed explanation of the price movement after each of them.
As can be seen from the graph, the genesis block (the very first block) was obtained on January 3, 2009, each subsequent halving had interesting consequences.
Each time the mining reward was halved, the price of BTC could not quickly follow the changes and reach a new record high. It took the market time to realize the new conditions of asset shortage.
For example, after the last halving in 2016, BTC was able to reach its record level of $ 19 843 only at the end of 2017, that is, after 1 year, 5 months and 9 days (see chart below).
Comparing this halving with bitcoin halving in 2012, we see that after the first halving, BTC had a slightly steeper arc leading to the then-new historic high of $ 1,149, which took 1 year and 3 days.
When will the next BTC halving be?
The next halving will take place at block 630,000, presumably it will be mined on May 17, 2020. This date is calculated using a simple equation:
- 1 BTC block is mined every 10 minutes;
- 144 blocks are mined every 24 hours (6 x 24 = 144);
- the current block is numbered 590 675 (August 18, 2019);
- 39.325 blocks remained before halving (630,000 – 590.675 = 39.325);
- 39 325 blocks / 144 blocks per day = 273 days;
- August 18, 2019 + 273 days = May 17, 2020.
Halving Bitcoin in 2020
Should we expect another historic high after halving 2020?
The truth is that no one knows. Historically, after bitcoin halving, market volatility increases, this is a kind of response to a decrease in BTC inflow to the market.
In addition, let's not forget that about 30% of all existing bitcoins are lost due to negligence of users, the death of owners, equipment breakdown without the availability of backup private keys, etc., which made the asset even more scarce.
Publication date 08/20/2019
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