It is predicted that Bitcoin will increase strongly in 2020 to reach 40,000–50,000 USD
What is Bitcoin Halving?
When Bitcoin was created by Satoshi Nakamoto in 2008, he designed how to distribute Bitcoin to people fairly without the need for intermediaries. This idea, called Mining, gives Bitcoin bonuses for miners to verify new transactions in new Blocks with complex computer calculations to create new Bitcoin. In addition, bitcoin miners have a second source of income in addition to the block reward, which is the mechanic who earns transaction fees when verifying the transaction.
So what is Bitcoin Halving (Halvening)? Halvening means halving: Every 210,000 Bitcoin Block is born (about 4 years), the reward for digging from a new Bitcoin Block will halve (1/2). As a result, the total amount of Bitcoin generated is as close to the limit of 21 million BTC
Bitcoin Halving №1: From January 3, 2009 to November 28, 2012, 10,500,000 BTC was created, which averaged 50 BTC every 10 minutes.
Bitcoin Halving №2: From November 28, 2012 to July 9, 2016, 5,250,000 BTC were created, averaging about 25 BTC every 10 minutes.
Bitcoin Halving №3: From July 9, 2016 to mid-2020, there will be 2,625,000 BTC created, averagely every 10 minutes of digging 12.5 BTC
Bitcoin Halving №4: And from 2020 to 2024, there will be 1,312,500 BTC created, meaning that on average every 10 minutes will be 6.25 BTC dug out.
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Bitcoin Halving №64: No more Bitcoin will be dug out
Bitcoin Code Code Halving?
Bitcoin Open Source link: https://github.com/bitcoin/bitcoin
In the Bitcoin source there is the command line: “Consensus.nSubsidyHalvingInterval = 210,000”
This command shows that after every 210,000 Bitcoin blocks created the number of new Bitcoin rewards created for each block will drop to 50%, about every 4 years.
In the figure above, the command line 1574 indicates that the maximum number of bitcoins approximately 21 million will be achieved if (the number of halving> = 64) and the number of additional digging Bitcoin is zero.
So why should Bitcoin Halving be included? Why not keep the same rewards at all times
The answer lies in the law of supply and demand of the market. If the number of coins generated is too fast (ie no Bitcoin Halving) and no maximum number of Bitcoin is created, the Bitcoin price will have inflation and the value of Bitcoin will be low when there are many Bitcoin circulating on the market. school
Vitalik Buterin, the founder of Ethereum, shared the reason for this:
“The main reason for this is to help control inflation. One of the problems of legal money is that it is controlled by central banks, and they have the right to print how much money they want, and if they print too much money, it exceeds the law of supply and demand then the price Its value will decrease rapidly. Bitcoin on the other hand has quite the same mechanism as gold. There is only a certain amount of gold in the world and therefore gold is a precious metal, with increasing value. So gold has maintained its value and has become a valuable trading and archiving tool for over 6000 years. I hope that Bitcoin will be able to do the same thing. ”
In other words, the rising price of gold is due to the fact that it is more difficult to find and exploit it because the gold reserves are getting harder and less.
Everyone involved in the gold mining industry must calculate the investment costs to be able to exploit gold and still gain profits. Bitcoin also has the same mechanism.
Bitcoin Halving events are designed to mimic the scarce features of gold (a precious metal). When gold was mined by gold and gold miners, it became increasingly scarce. The scarcity feature is done through the halving event of Bitcoin Halving, along with the PoW mining process to mimic the relationship between gold and gold miners. Satoshi encouraged the diggers by promising bitcoin rewards. However, the reward cannot be too much because this causes oversupply, and the immediate depreciation of Bitcoin.
The only difference is that gold diggers don’t know how much gold is left in the world. While Bitcoin miners can know exactly how much bitcoin is left.
So the difficulty to dig out a bit of Bitcoin is increasing and requires a lot of costs. Thus, the more difficult it is to dig and expensive, the more valuable it is in the long term.
Bitcoin Halving has made it difficult for miners (Miners)
At first glance, it seems that the miners will suffer, because before the second Halvening in 2016, each exploited block will be worth 16,000 USD. That number has dropped to 8,000 USD after the second Halvening took place.
If the reward is lower because Bitcoin Halvening takes place, that could prevent many Bitcoin operators. As for reason, it seems that when the mining difficulty level increases, there will be few digger continue to maintain this work, right?
However, the Bitcoin network has the ability to self-balance itself.
Although Bitcoin has also experienced past Downtrend cycles, Bitcoin Hash Rate is continuously increasing as shown below (https://www.blockchain.com/en/charts/hash-rate)
Excavators say they are willing to maintain or increase their computing power after the event. They all carry a belief that Bitcoin prices will increase and compensate for the reduced block reward.
According to Charles Hayter, CEO Crypto Compare, there will soon be an extermination of old diggers, even though technology improvements give rise to high-performance excavators and better prices. And then if the price of Bitcoin increases well enough, there will be many new miners joining this market.
How does Bitcoin Halving affect Bitcoin prices?
In the upcoming 3rd Halving, the new Bitcoin Block mining reward drops from 12.5 Bitcoin to 6.25 Bitcoin over the next 2 years — And people are thinking what will this affect Bitcoin’s price?
Let’s take a look at history a bit!
Bitcoin is only 10 years old, history may not draw a complete picture. However, historical models and trends are great for starting any price analysis.
In 2016, after the first round of Bitcoin Halving on November 28, 2012, Bitcoin price increased sharply from 10 USD to 100 USD only in the first few months of 2013 and then 1000 USD at the end of 2013 like that shown in the figure below below.
But after the round of Bitcoin Halving for the second time on July 9, 2016, Bitcoin price did not increase immediately but only increased slowly until reaching the previous peak of 1000 (in 2013–2014), suddenly increased to 20K dollars.
Thus, historical models show that Bitcoin prices can grow well, lasting about 18 months after each Halving.
It is not too difficult to predict Bitcoin price after the Bitcoin Halving round the third time between 2020
Garrick Hileman, head of research on Blockchain and Mosaic co-founder, said:
The electronic money market is affected by major events. As we get closer to the Halvening event, Bitcoin prices will likely increase. In the past, when it was nearing this event, we saw Bitcoin prices kept rising.
Thorsten Koeppl, economics professor at Queen’s University in Canada said:
It seems that no electronic currency can do what Bitcoin is doing. The value of Bitcoin is partly motivated by potential as a payment instrument, many people still use Bitcoin to transfer money internationally.
The important thing you need to remember is: Bitcoin is designed as a type of value-added storage asset.
Without Bitcoin Halving, Bitcoin today can only be worth 50 or hundreds of dollars instead of thousands of dollars now because digging Bitcoin too quickly will reduce the incentive to raise prices for Bitcoin.
What happens when the Bitcoin block reward is zero in 2140
It is often reasonable to ask the question: What happens when the bitcoin reward drops to zero? Will all Miners stop simultaneously doing bitcoin work and make the Bitcoin network stop completely?
To solve this answer, we must consider a few things as follows:
First, with the current mining rate along with the halving of Bitcoin Halving, it is estimated that the last block containing the Bitcoin reward will be exploited around 2140. When Bitcoin is about 130 years old.
The second thing to note is that the miners digging for bitcoin have a second source of income besides the block reward. It is a mechanic who earns transaction fees when verifying transactions. Every day there are hundreds or even thousands of Bitcoin that need to be paid by transaction fees (depending on the conditions of the Bitcoin network). Therefore, at the time of 2140, we can fully exploit transaction fees that can be profitable enough for the miners to continue to exploit indefinitely, even if they no longer have a mass reward.
One final point to consider is the appearance of new projects that coexist with the Blockchain Bitcoin. An example of this is the RSK platform. RSK is a smart contract platform that is intended to run on the Bitcoin network. It will enable smart contracts and implementation of decentralized applications (Daps) while using the main Blockchain Bitcoin. RSK is intended to be a competitor to Ethereum.
This means that in the distant future, miners can not only earn transaction fees from the bitcoin network but also be able to earn transaction fees from additional layers existing on the bitcoin network, such as RSK. In addition to RSK, there are many new projects running on Bitcoin Blockchain.
You probably already have your answer here
Where to track the upcoming Bitcoin Halving time?
You can track Bitcoin Halving time to follow Link: https://www.bitcoinblockhalf.com/
Or link: http://www.thehalvening.com/
2 links for you to see the countdown timer for the upcoming Bitcoin Halving event, as well as related information such as:
Total bitcoin is circulating
The percentage of total bitcoin exploited
Total remaining Bitcoin right after the next Bitcoin Halving event
From now until the end of the year, even if there is a rally, it will not be able to reach the peak of 20k and then Bitcoin will continue the cycle of light and Sideway Downtrend, finally coming near the end of 2019 will start the new Uptrend cycle.
The next Uptrend Cycle of Bitcoin
The next Uptrend cycle of Bitcoin will be divided into 3 stages: before and after the Bitcoin Halving event and after reaching the old peak.
At the beginning of the Uptrend cycle, Bitcoin prices will gradually increase until the Bitcoin Halving event №3 (mid-2020).
According to the Trend Line, at the event of Bitcoin Halving №3, most likely Bitcoin price is about to reach or regain the old peak of 20K, after Bitcoin regains the old peak, this might be the strong boom of Uptrend similar to took place in 2017 is over
Based on Uptrend history before and after the Halving event, Bitcoin will Uptrend last for 29 months. In particular, the cycle Uptrend is divided into 3 main phases:
Phase 1: 11 months Uptrend since the end of Downtrend until the 3rd Halving event but the pace of increase slowly. The end of phase 1 is the number 3 Halving event
Phase 2 + Phase 3: 18 months of Uptrend boomed after the 3rd Halving event.
Phase 2: Lasting for several months after Bitcoin Halving event 3: the range ranges from 1 to 5 months and has a gradual increase in speed. This phase ended after Bitcon reached the previous peak of 20k dollars
Phase 3: This is the final phase and the phase of Uptrend really exploded after the Halving 3 event. This is also the phase where we get the most money.
Total time of Downtrend / Sideway + Uptrend = 19 + 29 = 48 months equals 4 years (this is also the average time to have 1 Halving event once)
Note that the above timelines may differ from the actual 10–20%.
If at the beginning of 2019, Bitcoin ETF was approved early by SEC: the Bitcoin price boom in the Uptrend cycle also came earlier without waiting for the Bitcoin Halving event №3.
Below is a comparison of the Gold ETF chart when approved for you to understand why you said Bitcoin ETF will create its own rules for Bitcoin.
Therefore, you need to follow closely the Bitcoin ETF event if it takes place before Bitcoin Halving №3, you need to note the entry and exit points in the most reasonable way
Bitcoin is currently the 11th largest money in the world
Bitcoin is currently the 11th largest money in the world and it has achieved this with just a 9-page paper, created anonymously & initially thanks to a small community.
Millions of people have chosen a bank without CEO, office or marketing department and BTC has completely blown your mind.
Wish you success and earn more Bitcoin before starting the new Uptrend cycle
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