Now Bitcoin Halving Has Occured, What Next?
Bitcoin halving has been a major topic in the crypto world as well as in the finance world. Bitcoin halving already happened this year and it occurs every 4 years. I will be doing a little explanation on Bitcoin and Bitcoin mining in the simplest terms as possible.
What is BTC?
Bitcoin is the currency for the Bitcoin blockchain which is a decentralized distributed ledger that stores information of assets in a transaction. The transaction includes the sender’s address, the receiver’s address, the amount sent, transaction harsh or receipt all in a block which will be verified and cannot be altered. The verification of this blocks is done by a network of computers called nodes and the process is called mining.
Bitcoin Mining
The verification of transaction using computing power to scan a transaction and confirms block as they verify that the blocks it is in good shape. The mining process uses an algorithm called proof of work where every node needs to agree to a consensus before approving a transaction. I takes 10 minute to confirm one transaction or mine a block. Miners receive Bitcoin as reward coupled with fees from transaction as they keep mining. Currently, Miners receive 12.5 Bitcoin for every block verified (This was before the halving).
Bitcoin Supply
Satoshi Nakamoto was aiming to create the world’s next digital gold or diamond when creating Bitcoin in 2009. Bitcoin is only going to have a maximum supply of 21 million Bitcoin to be minted or brought into circulation but currently there are about 18 million Bitcoin in circulation currently. Satoshi was aiming to create a money that was deflationary as with the low supply, the purchasing power of Bitcoin will increase and this is unlike the fiat that is inflationary. Instead of the currency to lose value like the fiat, it will just keep increasing in its purchasing power.
Bitcoin halving
Halving is a reduction in block reward by 50% of its current reward. Since miners were rewarded 12.5 Bitcoin with fees before the halving, currently they will be receiving 6.25 Bitcoin as miners reward. The halving occurs every 210,000 blocks with a block being verified every 10 minutes which makes halving happen in 3.99 years approximately 4 years. The major purpose for this halving is to reduce inflation which would decrease purchasing power. Currently, the inflation rate in Bitcoin should be reduces to 1.9% from 3.8%.
What I think will happen after the current halving?
Bitcoin often hit a new all-time high after 1 ½ year of it’s halving. Bitcoin halving has happened and the price of Bitcoin will not go up immediately. Reducing inflation means giving the currency power but it does not mean immediate spike. The price might still fluctuate for a very long period of time but I can only hope for the best just like a lot of people.
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Whats Next?
In my opinion, just wait ...
Perhaps in the month of December we can see significant changes.
Yes, You are right even I am expecting a Bull Run, in the long run, maybe till the end of this year. And as you can see today it did bounce back from 8400 to 9600 which is an awesome indication.
Thank you and I really appreciate your effort :-)
Hello friend @ireti, thanks for sharing.
A simple and simple explanation, very easy to understand.
A lot of expectation was created around this Halving, many people believed or believed that there will be an escalation in the price in the short term, I do not know if it will happen.
We are still hoping for that to happen, we hope for the best.
Lols... Most people were actually expecting BTC to rise very high and fast immediately the halving process not knowing it usually takes time for this to happen. Even this year BTC halving seems to be very unique because lot of people seems to be very much aware of the halving process and this also attracted lot of investors.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead 💕❤️💕
I think coronavirus pandemic also has a part to play in this crises.
Hello @ireti as I do not know much about this subject but I do know that it is not good to go down certainly, as many have their money invested there and as every investment you know you can win or lose. But as you say, it's time to wait.
Investment is always about a win or a loss and sometimes we cannot even predict what will happen.
@tipu curate
Upvoted 👌 (Mana: 8/16 - need recharge?)
Bitcoin halving will rise the value of bitcoin to the new highlights
A lot of people are still expecting this great expected rise.
it's take time to impact on price. And yes great info about bitcoin and having. keep sharing !!!!
Thanks lucky.
What the effect to miners? will they switch their mining to other coins when their earning is getting lower?
The lower the supply the higher the value, I do not think any major bitcoin miner will leave bitcoing for an altcoin.
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