It takes less than a month for Bitcoin to halve for the third time

The cut in half Bitcoin is one of the most anticipated ecosystem events of 2020. The mechanism halves the reward per block that is mined in this blockchain. This event is affecting the mining industry and could affect Bitcoin’s price. For this reason, the community is only preparing for the event 28 days before it is activated.

It is planned that the cut in half happens next May 12that around 21:11:36 UTC, according to the website that is tracking its count. The mechanism will be activated when Bitcoin reaches block 630,000 as programmed in the blockchain code.

The cut in half It is a mechanism built into the Bitcoin network that is responsible for reducing the mining reward every 210,000 blocks. The event is repeated every four years and aims to reduce the reward for mined blocks to 0 BTC by 2140.

The tool is programmed to make Bitcoin a deflationary currency because it reduces its emissions over time and makes it a scarce commodity. In this way, the theory is established that as the demand for bitcoins increases, the cryptocurrency becomes more valuable in the hands of its owners over the years.

This year The mine block reward drops from 12.5 BTC to 6.25 BTC. For this reason, it is expected that cut in half Impact on mining revenues, which base their profits primarily on the bitcoins the network grants each time a new block is registered. With this in mind, miners and companies in the industry prepared for this hard financial blow months ago.

On the other hand, some enthusiasts think that the cut in half This could lead to a price increase for the cryptocurrency. The network previously registered two more cut in halfThis happened in 2012 and 2016. On both dates, the price of Bitcoin began to rise before the reward was reduced as users perceived the event as a mechanism that reevaluated the currency.

With the current coronavirus pandemic that has affected the global economy, The forecasts are not so clear and you cannot predict how the network will behave. Nic Carter, a financial analyst, believes the cryptocurrency ecosystem shouldn’t pay as much attention to this cut in half Bitcoin as it has no direct relation to its price. As a result, eyes could still be focused on how this asset behaves in the face of the new challenges posed by a world where COVID-19 is at the forefront.