The countdown starts to Bitcoin halving 2020 – What to expect?
Bitcoin prices increased in the past week because of the halving, but the coronavirus pandemic has affected the crypto market.
The Bitcoin halving is nearing and is supposed to take place in May 2020. The Bitcoin news has been trending all over the cryptocurrency market because of the Bitcoin halving amid coronavirus outbreak. Coronavirus is undoubtedly going to impact this halving because of the supply chain scarcity amid the lockdowns imposed across various countries.
The prices of Bitcoin are expected to face hike because of shortages in the market due to coronavirus outbreak. All the investors are focused on Bitcoin news for now as it is difficult to determine as to what will happen after the halving because of the speculative nature of Bitcoins. It has been pointed out in Bitcoin news that April could be the biggest ever month for Bitcoin and crypto. Bitcoins are highly risky, so it is challenging to ascertain as to what will happen after the Bitcoin halving in May 2020.
Bitcoin halving – Explained
Bitcoin supply is finite. The number of BTC mined per block reduces to 50% every four years. This process is referred to as halving or halvening.
When Bitcoin came into existence, for mining one block, the reward was 50 BTC. After first halving in the year 2012, the premium for mining one block came down to 25 BTC per block. After the second halving in the year 2016, the reward was reduced to 12.5 BTC per block. Miners used to keep themselves updated regarding the Bitcoin news.
Bitcoin news informs investors about the halving dates. The halving process is scheduled according to the block height instead of a specific calendar date. The halving process takes place after the completion of every 210,000 blocks. The next Bitcoin halving is expected to take place somewhere around 18 May 2020. This halving will take place at the end of the 630,000 blocks. The Block reward given to the miners will fall from 12.5 BTC per block to 6.25 BTC per block. The exact date of halvening is declared through Bitcoin news on various websites.
Current situation of the Bitcoin market
Bitcoin and cryptocurrency prices have increased this week, helping the analysts to analyze a bullish crypto market after the Bitcoin halving. Bitcoin news is showing various trends given by analysts about the cryptomarket. Bitcoin news shows that people are investing in Bitcoin as well as other crypto assets, the reason being upcoming Bitcoin halving 2020.
Impact of Bitcoin halving on Bitcoin price
Considering past halving events that have taken place, there is always a rise in the price of Bitcoins after the halving process. Though the amount of price change depends mostly on the demand and supply forces of the market. For a commodity’s price to increase, there should be an increased or steady demand for the product in the market. Various news websites are covering the latest Bitcoin news.
The process of Bitcoin halving leads to a decrease in the supply of Bitcoins in the market, and this reduces the circulation of BTC in the crypto market. However, the demand for Bitcoin remains the same, leading to a rise in the price of Bitcoin. Potential investors also plan to invest in Bitcoins at the time of Bitcoin halving as they have studied the Bitcoin news, which clearly shows that after the halving process takes place, there is a price rise of Bitcoin. This new demand created in the market leads to a further increase in the prices of BTC. News websites cover the titbits of Bitcoin news to inform people regarding cryptocurrencies and Bitcoin news.
Miner Capitulation – Good or Bad?
As per many sources of Bitcoin news, capitulation is a hot topic because of the upcoming Bitcoin halving. After the Bitcoin halving process takes place, the rewards given to the miners for mining a block will reduce by 50%. This will lead to the removal of inefficient miners. Bitcoin news defines capitulation as the process of elimination of inefficient miners. The deletion of inefficient miners leads to the distribution of rewards among the efficient miners only.
As said in the Bitcoin news, the inefficient miner pressurizes the sale of Bitcoins in the market, which is not suitable for the market. With the Bitcoin halving, miner capitulation will remove the inefficient miners and lead to a more stable crypto market, according to the Bitcoin news. Thus, Miner capitulation is suitable for the crypto market.