Jeez! We are in May!!!!
Only Bitcoin fanatics can understand the excitement around this Month. We've twiddled our thumbs patiently for May, and Wow here we are.
Bitcoin Halving is round the bend, and it sure will revolutionize the cryptocurrency world forever.
Bitcoin enthusiasts, are you prepared, excited, and just can't wait for the second week of the month? I'm super excited, very keen, my fingers are crossed, hoping for the best.
Image by Peggy und Marco Lachmann-Anke from Pixabay]
It's legendary and the most important event in Bitcoin.
The 3rd halving event is happening in a few days; it is aimed at decreasing bitcoin supply and it happens every after four years; the respective first and the second, halving events happened in 2012 and 2016. I know bitcoin enthusiasts can hardly wait for this one.
Satoshi Nakamoto designed bitcoin differently from other normal currencies. It's deflationary and intended to increase in value over the years, splendid! It's this quality that differentiates bitcoin from fiat.
The supply of Bitcoin is capped to only 21 million, and as of 2020, miners have mined 18 million bitcoins. Every time a miner confirms a transaction he is rewarded with block rewards which are the newly created bitcoins.
Before the first halving event, miners were rewarded with 50 bitcoins for each confirmed transaction, and after the event, these rewards were cut into half to 25 BTC per validated transaction.
Miners are currently rewarded with 12.5 BTC for each validated transaction and immediately after the 3rd event, they will receive 6.25 block rewards. This table shows the distribution of block rewards over the years.
| Year | Block rewards |
|---|---|
| Before 2012 | 50 BTC |
| Nov 2012- July 2016 | 25 BTC |
| July 2016- May 2020 | 12.5 BTC |
| After May 2020 | 6.25 BTC |
We are expecting the best out of it
Last month I saw on twitter a magnificent tweet that said: "Why do people sell Bitcoin before halving? Do they understand what Bitcoin is?" I can't answer those questions, but I hope this blog can give you a peek of the aftereffect of halving.
These halving events are expected to decrease the supply of bitcoin in the market. Halving creates a negative correlation between supply and demand, which results in an upswing.
From observing the pre-halving bitcoin prices, we can see a 40-50 percent increase which has always been an occurrence with the previous events. However, I think we can also credit the price growth to hodlers that are buying low and expecting to sell high after halving.
My thoughts.
All eyes are on this event — google searches about the May halving event have eclipsed way more than bitcoin searches in this season. Since Bitcoin prices are entirely driven by speculation; I predict a bullish Market after the event.
Also, using the previous events as a yardstick, I can conclude the price of BTC will rapidly increase to about $50,000 and it may not sell under $10,000 or below again.
I literally think this is the best time to obtain bitcoins.
price will go up for sure, but I wouldn't expect it to moon in the immediate future. If you go back to the previous halving it didn't go to 20k in a short time. It took I think almost 2 years. So I am cautiously optimistic :)
Yeah, considering the previous events, it roughly took 300-600 days before we saw a bullish trend. Although this time, I think things might be a bit different especially now the event is over hyped, and to top that, bitcoin users have also grown enormously. So, we might see an immediate upsurge.
I'm optimistic, too :-))
Nice to hear from you..