Bitcoin halving is one of the most anticipated events of 2020 which is expected to have a significant impact on the crypto market.
One of the most talked-about upcoming crypto events is the Bitcoin halving that is scheduled for May 2020. The event is quite the buzz in various circles with a lot of speculations regarding the impact that it might have on the market. In this blog, we will provide the readers with a brief review of the Bitcoin halving event and what it entails in the world of cryptocurrency.
What is Bitcoin Halving?
Bitcoin, which as we all know is the first-ever cryptocurrency to get introduced to the world, thrives on a complicated mining procedure for its generation. The value of the crypto is governed by the supply and demand and halving takes place to maintain the stability of the price.
To put in layman’s terms, Bitcoin halving is the process of slashing the price at which new coins are being created by half. It means that the miners will receive half BTC as rewards. This won’t be the first time that this event took place. Bitcoin halving is a regular procedure that takes place every 4 years.
The supply of Bitcoin is limited and there are a total number of 21 million BTCs that can be in existence at one time. Once it reaches the limit, no more Bitcoins can be extracted. The halving protocol is embedded within the make and structure of the Blockchain network of Bitcoin. Every time that the limit reaches 21 million, it automatically goes into halving mode. The event ensures that the price remains balanced by the limited generation of BTCs.
Impact of Bitcoin Halving
It is expected that the price of BTC will increase due to limited supply, leading to a rise in valuation. Most of the experts believe that it has a positive effect on the overall crypto market by stabilizing the prices, especially since Bitcoin experienced a bullish 2019. However, nothing can be said with absoluteness, until it comes to effect. One thing is for sure that the supply of Bitcoin will become constricted, post May 2020.