There’s no need to go over the fantastic success and downfall Bitcoin has seen in the years since its launch. The pioneer cryptocurrency had a shaky start but later grew to become the most expensive crypto the world has ever seen. However, despite the natural fluctuation caused by people buying, selling, and mining BTC, one huge influence in its price was the 2016 halving. If you’re new to the subject and you want to learn more, or you just want to make sure you’re making a good profit when the next halving will take place, check out the article we prepared.
What Is Bitcoin Halving?
Before being able to explain Bitcoin halving properly, we need to take a short look at the process of Bitcoin mining and its basics. Using very powerful GPUs, new Bitcoins are mined all around the world, and the process acts based on a reward being given every time a new block is mined. Halving basically represents cutting down the reward for every block with 50%, which means miners will have to mine more to get the same reward as before.
However, when Bitcoin was created, Satoshi Nakamoto also introduced a rule in its protocol that no more than 21 million Bitcoin can be mined in total. So, when the total Bitcoin mined will reach this digit, there will be no more mining possible. This means that Bitcoin already mined will increase in price as the possibilities to get new cryptocurrency drops.
Bitcoin halving dates are not 100% fixed; the protocol was designed to decrease with 50% for every 210,000 mined blocks. And considering that 6 blocks are mined on average within an hour around the world, we should observe the halving event every 4 years (more or less). Following the same logic and taking into consideration the mining power we have in the present day, the last Bitcoin should be mined in 2140.
When Will the Next Bitcoin Halving Take Place?
After having gone through 2 halvings already, in 2012, when the BTC price was slightly above $11, and another one in 2016 that saw the BTC price explode to over $20,000, the next event is foreseen to take place in approximately 6 months from now. Bitcoin halving 2020 will take place in June, and analysts expect this event to have a positive influence on the price of the cryptocurrency.
However, trying to predict if the next Bitcoin halving will have the same dramatic effects as the one in 2016 is not the easiest thing to do. We’ll go into how these events influence the price of BTC and what can we expect from the 2020 halving.
How the Halving Affects BTC Price
After answering, “when is the next Bitcoin halving?” it’s time to try and foresee what the effects on the price will be. To do so, we need to take a look at the Bitcoin halving dates history and see what happened when the two previous halvings took place.
The first halving occurred on the 28th of November 2012, and back then, the price of 1 BTC was around $11. One year after, it boomed to over $1,100. Sure, the skeptics will say that an increase in demand can also trigger the price boost, BTC becoming more and more popular and whatnot. Also, even though the price eventually fell to around $200, after the halving, it was still 20 times bigger than before the event.
The second halving is also the most spectacular we have ever seen. Taking place in July 2016, it saw the price of BTC jump from around $700, all the way to the all-time high of over $20,000 in 2017. And again, even if the price eventually dropped from the $20K mark, the stable $7,000 are still 10 times better than before the second halving.
What Can the 2020 Halving Bring?
Since the Bitcoin halving countdown has already started and we are sure it’s going to take place this year, we should know what to expect. Judging by the other two events, we can expect amazing growth once again. At least for the short term, we could see BTC price increasing 10 times or more since its supply will be even more reduced after this halving, which creates a lot of demand.
Also, there are voices saying BTC could easily hit the $100,000 threshold after 2020 halving, and considering that’s a mere 5x its all-time high, that’s not overly optimistic at all. Another factor that could easily influence the price of BTC after the third halving is the ever-present FOMO. Fear Of Missing Out is likely to generate a wave of buyers that will push the price of Bitcoin even further.
More than that, since BTC is used in all kinds of activities nowadays, like enjoying online games, there’s a bigger pool of potential buyers enticed by the fact that the price of a BTC could grow 10 times or even more soon.
There’s good news for other cryptocurrencies as well since such a positive movement will influence buyers of different coins to accelerate their purchases, and wealth can be transferred to ETH and LTC just as well.
No matter if you already have BTC or you’re planning on buying some, this is the perfect time to do so. History shows that these halvings greatly influence the Bitcoin price, and you could easily boost your profit with such a move. However, you should also be considerate and make sure you understand the risks of such transactions and never use the money you are not prepared to lose.
We’re sure we have many cryptocurrency enthusiasts among our readers. What’s your opinion about the June 2020 halving and how it will influence the BTC price? Feel free to use the comments section and help everyone enjoy this spectacular event we’re going to witness.
Thomas Glare is passionate about cryptocurrency ever since he used his first paycheck to buy some ETH that then boomed in value with over 100x. He’s writing about the subject as well as he believes having more people involved in the phenomenon will bring benefits to everyone.