Bitcoin Halving
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Hello friends and famz. I trust you're good and keeping well too. It feels good to here to share with you my thought once again...smiles.
Just yesterday I was sharing my little finding about Bitcoin and what the future holds. I was able to share with us what some experts predicted and projected in the near future. Well we just hope all unfold in out favour soon.
So today I was discussing with a dear friend and then he mentioned something that caught my attention. I have actually heard about it before but haven't really given it a thought.
He mentioned "Bitcoin Halving" and how he thinks it will affect the price of Bitcoin and other coins when it eventually takes place. I then decided to go check out some stuff about this amazing event.
This can be defined as an event that shows how mining reward is cut into half. Well this has been designed right from inception as it has been programmed into it mining algorithm.
What is hoped to achieve with this event is the value of Bitcoin. Every successful mined block is added to the chain or supply and when it becomes common or too much,the coin losses it value over time.
It just like fiat. Inflation occurs when there is too much of a particular fiat in circulation. The money then losses it value because it is not scarce. That is why fiat is not printed at will,that's is always a yardstick to print more. Scarcity is one of the valuable attribute of money.
Bitcoin is a digital money (permit to use that) and it value needs to be protected. That is the reason why the supply of bitcoin is fixed. It would never exceed 21 million supply and according to my research 19 million had been mined so far.
It therefore means we have 2 million left. It important to mention that mining reward is reduced by half when 210,000 block is added to the chain and it takes approximately 4 years for that amount of block to be produced and added to the chain.
In other words, halving takes place every four years. The first halving took place in November 2012,the second in July 2016, the third in May 2020 and the next one is scheduled to come up in 2024 which is exactly four year from the last halving.
In this section we will be looking at the aftermath of every halving. We are not in doubt that the goal of this is to maintain the value of Bitcoin by limiting it supply so that inflation doesn't overtake it.
However there are other things that are note worthy about this event according to historical fact and data. Let's check out the effect of this event from the very first Halving.
- First Halving
The first halving took place in November just like I mentioned and according to the information gathered, Bitcoin was at $11 at this point but after the halving, the price multiplied by 100.
- Second Halving
The second halving just like i mentioned earlier took place in 2016,July to be precise. The price of Bitcoin as at then was around $500 - $1000 but when the halving occurred since it was due judging from the 420,000 blocks that had already being created, it price rose tremendously to about $20,000 by December the following year.
- Third Halving
The third halving also added to the buzz. This occurred in 2020, May to be precise. Bitcoin rose up to $30,000. And ever since we have seen it go beyond this threshold. It ATH before this present bear season was about $69,000.
The next halving is going to be by 2024 and we hope to see tremendous growth because from past data and record we know that halving helps increase the value of this coin.
According to my research, there is going to be a total of 64 halving which is projected to end in year 2140. It therefore means as the year goes by,the value of Bitcoin will continue to appreciate as long as having continues, all things being equal.
I believe by now we understand what halving is all about. It is aimed at maintaining the value of Bitcoin over the years by limiting it's supply. I know you have picked one or two lessons from this write up.
Free free to share your though about the subject. I will be more than happy to go through them. Thanks for your time.
Credit : @lhorgic♥️
100 times price change is huge in first halving. If it is even 3 times in next halving in 2024 then it will be massive in the crypto World. Lets see. Thanks for your nice topic.
One more thing, just increase your activity in the community to get good support. Thanks.
Thanks for interacting with my post @engrsayful. I will definitely increase my activity level. TFC is one of the communities am committed to on steemit. Thanks once again for your contribution.
We're all anticipating the next BTC halving as it will play a significant impact in the next bull market run, let definitely see how it goes
Yes boss. You're right,it will serve as a catalyst for the next bull run. Thanks for engaging with my post.
You're welcome
I consider halving as a tremendous strategy for controlling the money circulation of cryptocurrency. Otherwise the cryptocurrencies would be depreciated over time and lost its appeal to the investors as well as the users.