Bitcoin Halving — Everything You Need to Know
The amount of Bitcoin that gets created every 10 minutes gets cut in half every four years.
This is known as the Bitcoin Halving. The next Halving will be Bitcoin’s third and will take place in May 2020. This is when the current block reward of 12.5 Bitcoin every 10 minutes will be cut in half to 6.25 Bitcoin.
Seeing as the maximum supply cap for Bitcoin is 21 million, halving the block reward means that it will take longer for all Bitcoin to enter circulation.
But this also means that less and less new Bitcoin will be created over time and due to its limited supply — Bitcoin will continue to become increasingly scarce.
And scarcity enhances value.
Historically, the Bitcoin Halving has proven to be an important catalyst that propels Bitcoin into a new Bull Market.
In fact, Bitcoin tends to begin its new bull trend at least a year before its Halving.
But what effect does the Bitcoin Halving have on Bitcoin’s price?
In this article, I will address the following questions:
- How did each of the previous two Bitcoin Halvings affect Bitcoin’s price?
- Are there any recurring tendencies as to how these two Halvings affected Bitcoin’s price?
- How could Bitcoin’s upcoming third Halving potentially affect Bitcoin’s price?
