Little by little is about the most awaited moment by many investors interested in the market of cryptocurrencies. Exactly, missing 26 days for the Halving of Bitcoin a reality. What should you take into account to maintain a monitoring accurate of the situation of BTC? Find out what here
Contents
What is the Halving of Bitcoin?
As part of the issuance of coins of Bitcoin, the miners receive a certain amount of these every time there is a block (approximately every 10 minutes). When Bitcoin began, were given 50 BTC per block as a reward to the miners. After that is extracted for 210,000 blocks (approximately every 4 years), the reward of the block is reduced to half and will continue falling to the middle, even the reward of the block-by-block is 0 (in approximately the year 2140). From now on, the reward of the block is 12.5 coins per block and it will decrease to 6.25 coins per block after the half. Bitcoin was designed as a currency deflationary. Like the gold, the premise is that with time, the emission of Bitcoins will decrease and, therefore, will become more and more scarce with time.
What happens with the price of Bitcoin when there is a Halving?
What typically happens is that when you become more and more scarce, Bitcoin is destined to increase, if and when the demand increases in time. As we know the issue of Bitcoin over time, people can rely on the supply of scheduled / controlled. This is useful to understand what is the rate of current inflation of Bitcoin, what will be the rate of future inflation in a particular time, how many Bitcoin are in circulation and how many are left untapped. Missing 26 days for the third Halving of Bitcoin to occur, it is valid to look at in that state is currently. Specifically, it is expected that the Halving occurs on the 12th of may, approximately at 21:11:36 UTC. The in vivo tracking of the date you can do it from this web page, which has a counter of the days are missing. The mechanism is activated when a Bitcoin reaches the height of the block 630.000, as scheduled in the code of the blockchain.
What other consequences are expected from the Halving?
Much has been said of the effect of the Halving of Bitcoin in their assessment, but we must also comment on the possible effect on the miners. It is said that if you do not meet the expectations, this event could force the miners to weak to get out of the network. However, these still have a few options that you can use, as for example the sale of Bitcoin on the spot market as they are mined new coins.
Conclusion
Make predictions about the Halving has changed a lot since the emergence of the COVID-19 in the world. This we have commented extensively in Criptotendencia, but it is always good to contrast opinions. At the time of writing this publication, Bitcoin is located around 6.700 USD. This represents a loss of 2.80% of the value with respect to the day of yesterday. Despite this, it has been reported that investors hold and accumulate Bitcoin in the hopes of what may happen with the Halving. Graphic weekly price of BTC, which is 26 days away from the Halving of Bitcoin. Source: CoinDesk Finally, the gap between the returns of gold and Bitcoin has frustrated traders who are predicting that trillions of dollars of emergency aid related to the COVID-19 will lead to inflation. In addition, these operators also have other factors such as the monetary stimulus of the Federal Reserve and other authorities. However, the moving average of seven days of the total number of BTC in exchanges fell to 2.214.365 on the 14th of April, the lowest level since last June. This is according to estimates of the intelligence firm Blockchain Glassnode. Until Tuesday, the average fell almost 8% from a maximum of 2.404.786 registered on 17 January 2020. The decrease in the balances of exchange rate suggests a shift to strategies of accumulation over the long term. Generally, investors removed cryptocurrencies of the exchanges to keep them in their wallets, personal when you expect prices to go up. Therefore, we can intuit that many are preparing for the Halving.