How Many Days to Halve Bitcoin?

The moment that many investors are most waiting for and interested in the cryptocurrency market is gradually approaching. Exactly 26 days until Bitcoin Halving becomes a reality. What should you consider to monitor the BTC situation closely? Discover it here

What is Bitcoin Halving?

When Bitcoin coins are issued, miners receive a certain amount of it every time a block occurs (approximately every 10 minutes). When Bitcoin started, 50 BTC per block were delivered to miners as a reward.

After 210,000 blocks have been mined (approximately every 4 years), the block reward is halved and further halved until the block-by-block reward is 0 (approximately for the year 2140). As of now, the block reward is 12.5 coins per block and halves to 6.25 coins per block.

Bitcoin was designed as a deflationary currency. As with gold, it is believed that bitcoins will decrease over time and therefore become scarcer over time.

What happens to the price of Bitcoin if there is a halving?

What usually happens is that bitcoin will increase with scarcity as long as demand increases over time. Knowing that Bitcoin will be issued over time, users can rely on the planned / controlled deployment.

This is helpful in understanding what Bitcoin’s current inflation rate is, what the future inflation rate will be at a given point in time, how many Bitcoin are in circulation, and how many are still to be used.

With 26 days until the third bisection of Bitcoin, it is valid that we analyze what state it is in at the moment. Especially The halving is expected to occur on May 12 at approximately 21:11:36 UTC.

The live monitoring of the date can be done on this website, which contains a counter for the missing days. The mechanism will be activated when Bitcoin reaches block 630,000 as programmed in the blockchain code.

What other consequences are expected from Halving?

Much has been said about the impact of Bitcoin’s Halving on valuation, but the potential impact on miners also needs to be discussed. Failure to meet expectations is said to be an event that could displace weak miners from the network.

However, they still have options they can turn to, e.g. B. selling Bitcoin on the spot market when new coins are mined.

Conclusion

The prediction of halving has changed a lot since the appearance of COVID-19 in the world. We have discussed this extensively in Crypto, but it’s always good to contrast opinions.

At the time of writing, Bitcoin is around $ 6,700. This corresponds to a loss of 2.80% of the value compared to yesterday. Even so, it has been reported that investors keep Bitcoin and accumulate until what can happen to halving.

Finally, the gap between gold and bitcoin yields has frustrated traders who predict that trillions of dollars of COVID-19 emergency aid will lead to inflation. In addition, these operators also have other factors such as monetary incentives from the Federal Reserve and other agencies.

However, the 7-day moving average of the total number of BTCs on exchanges fell to 2,214,365 on April 14, the lowest since last June. This is estimated by the blockchain secret service Glassnode.

On Tuesday, the average fell by almost 8% from a high of 2,404,786 on January 17, 2020. The decline in foreign exchange balances indicates a shift to longer-term accumulation strategies.

Investors generally pull cryptocurrencies off the exchanges for storage in their personal purses when prices are expected to rise. So we can imagine that many are preparing to cut in half.