Bitcoin Halving

Bitcoin halving is unique to the Bitcoin blockchain design. According to the way the Bitcoin blockchain was designed, every 210,000 blocks (roughly every four years) the amount of Bitcoin that is given to each miner for maintaining the blockchain and creating a new block is halved. The next halving takes place this May. Since the creation of a new block depends on the number of transactions and the amount of traffic the network is seeing the precise time of halving can only be an estimate. Currently, a Bitcoin miner is rewarded 12.5 Bitcoin for his efforts. With the halving that amount is reduced to 6.25 Bitcoin. With each halving the price of Bitcoin has appreciated, sometimes considerably.

The logarithmic chart shown above displays Bitcoin’s percent price appreciation. Roughly speaking, the halving doesn’t seem to influence Bitcoin’s price other than to say that Bitcoin maintains its price appreciation best around the time of the halving.

Don’t expect anything wild or unusual during this period. Bitcoin enthusiasts are always looking for something to hype, halvings being no exception. Expect Bitcoin to continue its advance over the longterm.

Published by Allen Lubow

Inventor, critical thinking.

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