The Bitcoin Halving is in front of the door. Just 6 days and we will write history again. It is the third Halving of BTC and all are eager to see how the price will react to it. To get a sense of how it is just to Bitcoin and what impact can have the Bitcoin Halving on BTC price, we look at the current Hashrate, Google searches and the price curves of the last two Halvings in more detail.
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Bitcoin Halving – hash rate reaches new all-time high
The Bitcoin Halving is an important event in the BTC Economy. Here, every 210,000 blocks (about 4 years), halving of the Block Rewards. This means that the reward is reduced for the Find of a block and on a sustainable basis. Currently miners get for a found Block to 12.5 BTC. After the Halving, only 6.25 BTC. This is a huge blow to the Miner, and, ultimately, for the supply of new Bitcoins.This is also one of the possible explanations for why the Bitcoin Hashrate two days ago, a new all-time high has been reached. Miner currently use each means of as many blocks as possible before the Bitcoin Halving to. Because each Block brings currently twice as much as a Block after the Halving.
#Bitcoin hash rate hit a new all-time high. pic.twitter.com/XtPbZRU8wp— glassnode (@glassnode) May 3, 2020
Due to this sharp increase in Hashrate miners to find blocks faster than every 10 minutes. As a result, the Bitcoin Halving Countdown pages differ tremendously.The Difficulty determines how hard it is to find a Block. Depending on the Hashrate, the Difficulty is adjusted every two weeks according to below or above, to ensure an average block time of 10 minutes. The last Difficulty adjustment was made today. The next is scheduled to take place on the 19th of may, i.e., 7-8 days after the Halving.Therefore, we don’t have to Worry about the security of the network. If a lot of miners should jump on Halving itself, then the Difficulty adjusts downward and the rest of the Miner can be re-mines more profitable. This, in turn, attracts new miners. A never-ending cycle, which is based on game-theoretical approaches, and for 11 years worked without problems.
Google searches give us more clues
Much more exciting is the question as to the possible price movement but for the most. If we look at the current searches for “Bitcoin Halving” on Google, then we see a very clear image period: 5 years; Region: worldwide.The searches have reached its all-time high. Never have so many people interested in the Bitcoin Halving. But how it looks in relation to the BTC price? Buy the seekers also? Let us look at the searches for “Buy Bitcoin”: time period: 5 years; Region: worldwide.We can clearly see that to buy the interest in Bitcoin, although slightly increased, but in comparison to the end of 2017, is relatively low. What Information are we supposed to infer?Either many who are already invested in Bitcoin, according to information about the Halving or novice traders, the deal for the first Time with this theme. This is a good sign, because thereby the understanding of the Halving increases, what Bitcoin is and what Potential lies behind this. This is in the long term, a bullishes Signal.Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!
What us the Bitcoin Halvings can tell you about the price
But we come now to the Bitcoin exchange rate movements of the last Halvings. For this purpose, we use the data from the Token Daily, which have made the effort to analyze the price development before and after the Halvings.
5/ Why bitcoin’s price usually falls during the halvingIf the price action around the third halving next year followed the same trajectory (median inflation changes the form of ~4% to ~1%), we may not observe dramatic price changes until the middle of 2021. pic.twitter.com/RrsC0sfpRI Token Daily (@token daily) May 4, 2020
In the two representations, we see the Bitcoin exchange rate development 12 months before and after the Halving. Thus, we can see that the price is, on average, fallen in the first month after the Halving. However, only an average of around 4%. On the basis of these results, it is expected a sell-off in the first month after the Bitcoin Halving, but the respective losses kept to a minimum and are only short-term in nature.On the strength of the data here, and you can certainly argue. Up to now, we have only two Halvings as a basis in order to collect our data. Therefore, it may lead to strong deviations.There is nothing will give us more than waiting and watching. In the long term, the price movements before and after this Halving will play no big role anymore. The largest price increase has seen Bitcoin anyway only 1-2 years after the Halving.Therefore, my tip at this point: you from the volatile price movements are not crazy. Look at the big picture and rejoice rather to the next Halving. More forms to you at this time in the direction of Bitcoin and trying to understand what Impact can have this revolutionary Asset for our future monetary system.
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