– Halving happens approximately every 4 years after the network mines 210,000 blocks
– Reward for miners is cut in half
– Reward (mining) system will continue untill about 2140 when BTC will reach the limit of21,000,000 BTC
Previous halvings
| Halving date | 2012 | 2016 | 2020 |
|---|---|---|---|
| Block reward in BTC | 25 BTC | 12.5 BTC | 6.25 BTC |
| BTC created per day | 3600 | 1800 | 900 |
| BTC price at the start | $12 | $663 | $8749 |
| BTC price 100 days later | $42 | $609 | $11,950 |
| BTC price 1 year later | $964 | $2550 | ATH was $68,789.63. |
Block rewards after the next halving will be split in half – 3.125 BTC.
This is not mine but you should take a look at it anyways
In all three ocassions BTC price went up after some time.
– 10,000% when it went from $12 to $1200
– 2900% percent when it went from around $650 to $19,000
– 750% when it went from $9000 to the last ATH
| 10,000% | from $12 | to $1200 |
|---|---|---|
| 2,900% | from $650 | to $19,000 |
| 750% | from $9000 | last ATH |
So what I mean is the next halving may be good in terms of price, it just won't be something crazy like 1000% or 2000%…
Reading articles I see that most of the people are optimistic about increase of 200%, which is realistic.
Before the last halving, on May 11, 2020, the price of bitcoin increased by 19% from the same day a year earlier
Also, Bitcoin's inflation rate seems optimistic:
-was 50% in 2011
-after the halving it was 12% in 2012
-in 2016 it was 4–5%
-2020 was around 4%
-after and now is 1.7%
However, I think that we should keep in mind that doesn't have to mean that it will happen again. I think that we can not predict what will be the value of BTC after the incoming halving. In fact, the way I saw it, it is possible that the halving is already cashed in the price so the actual halving may not have the impact that it had in the halvings prior to this one.
– price can go up and people will sell their holdings, thus creating a sell-off
– psychological aspect should be considered and it can make miners less willing to sell since their earnings will be slash in half
– I think that we shouldn't expect a rise in the price that could be compared to previous halvings such as
– There is also impact of media that should be considered and how much scene will they give to BTC halving
– Basically while the supply drops, demand increases or decreases and the price will change as a result
What is your opinion, how will halving impact BTC and its price?
submitted by /u/middlemangv
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