3 IMPORTANT THINGS TO KNOW ABOUT BITCOIN HALVING
There has been a lot of buzz and confusion going about bitcoin halving which many investors and traders are not able to get a clear view of the impact that would lead them forward.Let me make this short and simple on Bitcoin halving.
WHEN IT HAPPENED — This rare phenomenal process happens once in every 4 years,recently this was seen happening on May 11, 2020 around 4 pm est,here every 210,000 blocks are mined and the rewards given to Bitcoin miners for processing transactions is cut in half at which new Bitcoin comes into circulation.The reward for opening a BLOCK has now been changed from 12.5 new coins to 6.25 (A CLEAR HALVING)This is Bitcoin’s way of using a synthetic form of inflation that halves every four years until all Bitcoin is released.
WHY IT HAPPENED — Halving as a process was embedded into codes that were used for new creation of bitcoin in itself,this has been designed by the most renowned inventor of Bitcoin SATOSHI NAKAMOTO(A genius mind)The main purpose of Halving is to control inflation of cryptocurrency to maintain its value.This is a good thing that happened to protect and secure the future from unpleasant global economic events that may occur.
WHAT WILL HAPPEN — Theoretically, such a practice would be beneficial for miners because the break-even price of Bitcoin mining spikes significantly when a block-reward halving occurs. According to James Todaro, head of research at TradeBlock, the break-even price of Bitcoin mining is expected to surge from $7,000 to anywhere between $12,000 and $15,000 after the halving.
CONCLUSION — At this point of time when we predicted mainly on Bitcoin price that has been playing a major role contributing to GLOBAL ECONOMIC CONCERN Coronavirus — Covid 19 that has triggered a new way deeply impacting its ratio and could stimulate further investment in the space and help address its other shortcomings.In 2018 bubble saw Bitcoin rise around $20,000, only to fall to around $3,200. This is a massive drop but Bitcoin’s price before the halving was around $650. While this system has worked so far, the halving is typically surrounded by immense speculation, hype, and volatility in its nature.We might expect a surge in coming months and then a major crash could be seen if we look at the trend that has been going on since 2011.
So friends,i hope now you are able to identify the process of halving and its impact that would happen in future in the world of cryptocurrency,this could be rewarding for investors and traders as we can see big movement happening,for traders who are into INTRA DAY/Scalping need to play carefully as the price movement could be immense so always ensure to use STOP LOSS for all trades that is executed.
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