In 2020, the third in the history of Bitcoin halving will occur. Will it affect its further development and how much cryptocurrency can cost this year? Let's figure it out together together.
What is halving?
Bitcoin halving is an event that occurs approximately every four years and prevents coin inflation while halving the reward for miners for a mined block. There have already been two “halvings” in the history of Bitcoin: previously, the reward was 50 Bitcoins, now 12.5, and in 2020 it will drop to 6.25 BTC.
What is the effect of halving?
Bitcoin was invented in such a way that as a result only 21 million coins can be mined. Each halving reminds that the reserves are running out, although the last Bitcoin should be mined around 2140. And each halving limits the number of new Bitcoins being created, making existing coins more valuable.
How does halving affect the price of Bitcoin?
As a rule, the price of BTC rises as much as possible during the year before and after the event. After the first halving in 2012, Bitcoin hit a record high of $1000 by November 2013. And after halving in 2016, it took off again and reached a maximum of $20089 on December 18, 2017, after which there was a decrease. But since February 2019, Bitcoin again began to slowly grow, as well as the number of its transactions.