Is the Halving Event going down?
It is considered the biggest highlight in the crypto year 2020. With the third Bitcoin Halving Event, a lot is changing in the crypto system. But now the euphoria seems to be fading due to the scary news about the coronavirus pandemic. Let’s take a look at the current events.
Bitcoin Halving Event in detail
The term “Bitcoin Halving” refers to the halving of the Coin Rewards for the miners. The halving is an integral part of the Bitcoin system and is implemented in the first block, the Genesis block. Accordingly, the Miner’s reward is halved after 210000 mined blocks in order to keep the inflation rate of the crypto currency in check in the long term. Thus, after 2012 and 2016, the third halving in the history of Bitcoin is already pending. The current reward for the miners is 12.5 Bitcoin per block mined and will be reduced to 6.25 Bitcoin per block after the upcoming Halving Event.
Facts about Halving
At the time of the article, there are 18,280 million BTCs in circulation, which means that more than 87 % of all BTC units have already been mined. Nevertheless, it will still take more than 100 years until the last Satoshi (Bitcoin unit) is mined. Bitcoin’s market capitalization is currently around USD 111.128 billion. This value corresponds to a BTC Dominance Index of just under 65 %. The current inflation rate of Bitcoin is 3.66 %. After the next BTC Halving Event this will fall to a value of approx. 1.9 %. The Bitcoin ecosystem is stronger than ever before. The level of difficulty (Difficulty) of 16,552,923,967,337 illustrates this condition. The hash rate during this time is 95.80 exahashes per second.
Block Time slows down
The norm for one block mines is about 10 minutes. Due to the current crisis, however, the average block time seems to be slowing down. Due to the enormous sales, many miners have decided to switch off their equipment because the cost-performance ratio is not worth it. As a result, the average block time has increased to just under 14 minutes. Since Thursday, however, it looks as if Bitcoin could gradually recover.
Bitcoin course current
The Bitcoin share price recorded a small loss of about 4 % on Saturday. Thus the No.1 crypto currency is now at a price of 6100 USD. After breaking through the 5500 USD line, it took less than 5 hours until the Bitcoin reached a value of approx. 6400 on Friday. The rapid ups and downs reflect the high volatility. This is mixed with a low overall market capitalization and news from the ailing global economy.
No hype about Bitcoin Halving?
Many experts have been arguing for months about whether the Bitcoin Halving event has already been priced into the price. At the last BTC Halving Event in 2016, Bitcoin was only able to record a small increase from 650 dollars to 675 dollars in the following week, but many experts see the main influence of the rewards halving on the price already 3-12 months before the actual halving. Thus, the No.1 crypto currency recorded a price gain of over 30% before the last halving. Thus, we are already in an accumulation phase before the upcoming halving of Bitcoin Rewards. However, much has happened in the last 4 years. This makes an exact forecast impossible.