Most Bitcoin Bitcoin traders and investors will have some idea what the Bitcoin Halving is. So let’s have a look at what we know!
What Is Halving?
So around the world, there are groups of people that use highly sophisticated computers, which are running 24 hours a day, mining Bitcoin blocks from the blockchain. It is not cheap or easy to do so don’t think you can just wire your laptop up and mine! Anyway, when a block is successfully mined, the miners are rewarded with Bitcoin for their efforts. But, after every 240,000 blocks, the reward of mining halves. At the moment, miners are rewarded with 12.5 BTC for every block they successfully mine. But, the end of the current 240,000 is due to run out in May, based on the average time it takes to mine each block. This means from May, miners will only receive 6.25 BTC as a reward every time (Halving) until the next halving occurs in around 4 years.
So What Effect Will This Have?
Good question! In previous halving years the price of Bitcoin has shot up dramatically in the run up to the event. In previous halving events the price has increase over 100% in the run up to the halving. Many predict anywhere from £14,000 and $55,000.
It is worth noting that ‘experts’ suggest this halving may be different, as the bearish trend has lasted longer than usual in the build up to the event, with the increase already been fixed in to the current price. If this is true, then the price will not be as high as others suggest.
So What Do We Think?
Although we would love to imagine Bitcoin back up to $55,000, I don’t believe this will happen. However, I would like to think we can be optimistic enough to reach at least $10,000! But this all depends on if Bitcoin has the same effect as it has done the past 2 previous halvings!
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What do you think? Let us know!