At 3:23 on May 12, as the last block was dug out, Bitcoin’s current block height reached 630,000, and the halving was completed.
The market is not sad and unhappy, there is no big drop, only a small increase.
Bitcoin halving is only halved every four years, and the latest Bitcoin mining block reward is halved, reducing the Bitcoin block reward from 12.5 BTC to 6.25 BTC.
At the beginning of the birth of Bitcoin, in order to control BTC inflation, Satoshi Nakamoto proposed a simple and effective method-a reward halving mechanism. That is, the theoretical total amount of BTC is 21 million, and no new BTC will be generated after the issuance. Through the reward halving mechanism, BTC can effectively contain its own inflation.
Why do you look forward to halving the market?
Since its birth, Bitcoin has experienced two halvings. On November 28, 2012, the supply of Bitcoin blocks was halved and adjusted for the first time. Then in November 2013, Bitcoin ushered in a bull market, and the price soared to $ 1,000. On July 9, 2016, Bitcoin ushered in a new wave of halving. On December 17, 2017, Bitcoin hit a high of 19783.06 USD. At the end of the day, Bitcoin dropped to $ 19,500. Overall, the price of Bitcoin rose by 1824% from January 1 to December 17.
Compared with the rise in the previous two halvings, people are looking forward to halving the market. However, the future that happened in the past may not necessarily happen. The macro background of each halving, participants, trading institutions, and price levels are not the same. Before this halving, due to the market’s greater expectation of halving, a round of upswing has already been spawned.
In addition, people expect to halve the market, mainly because the halving will push up the price of the currency, because the scarcity of Bitcoin has increased: more and more users will continue to join the Bitcoin network, while the output of Bitcoin is decreasing Although halving may push up the price of Bitcoin in the short term, the combination of these two factors will push up the price of the currency in the long term.
The impact of Bitcoin halving
Since the first two bitcoin halvings eventually had a positive effect on the price of bitcoin, bitcoin halving has become the object of various price predictions and speculative activities. Although some cryptocurrency participants predict that the third bitcoin halving will not affect the price of bitcoin, others are convinced that the halving will definitely affect the price of bitcoin due to the reduced supply of new bitcoin.
Although the bitcoin price correlation seems questionable, the latest bitcoin halving has a direct impact on miners. Many encryption experts predict that the third halving will immediately cause miners to stop mining new bitcoin business due to the large number of mining equipment that will become obsolete.
Waiting for the answer for 4 years, finally concluded. Let us wait and see how bitcoin will develop in the future.