While there is still some time left until the next so-called Bitcoin halving, experts are already assuming that the upcoming halving of 2020 will have a positive effect on the price. But what exactly is Bitcoin Halving? Basically, Satoshi Nakamoto has developed a very important feature in the early programming of the digital currency. The reward for a single block mining is halved. Coupled with the fact that the number of bitcoins is limited to 21 million coins, prices could rise as (rising?) the demand encounters a limited supply. Because it's harder to calculate the numbers and you need more computing power. And this capacity costs money. This meant that "earlier" several bitcoins per day could be calculated on the home PC. Nowadays, this would take years for the same number of Bitcoins.
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The Halving Cuts Back The Offer
As a result of this limited availability and increasing demand with increasing awareness, the value of a bitcoin increases. Now comes the so-called halving. This is put in the code of each BTC.
Specifically, this means that every 210,000 blocks or every 4 years, miners receive only half of Bitcoins as rewards (so-called rewards) for their mining work. By 2012, the miners received 50 BTC per block, after November 28, 2012 that was only 25. Since July 2016, another 210,000 blocks later, this is only 12.5 BTC per block.
The Next Halving 2020
So the next Halving will be in May 2020. The rewards for miners will be halved from 12.5 BTC to 6.25 BTC. And there are shared opinions among the community and among experts on how this affects the Bitcoin course. On the one hand are the optimists who predict a price jump. Since they continue to expect increasing awareness and thus also increasing demand, this must have an effect on the price, since the supply can no longer rise. On the other hand, experts see it as price neutral. This includes u.a. Mao Shixing, co-founder and CEO of the world's sixth largest mining pool, F2Pool. In an interview with Jinse Finance, for example, he said that investment income from mining rigs could be offset over time by various household appliances. Use of such devices would thus result in a drastic increase in bitcoin miners, causing the bitcoin eco-system to explode.
Whatever it is, Halving is always a special moment in the Bitcoin world.
