Community prepares itself
The third Bitcoin Halving Event is just around the corner and the uncertainty could hardly be greater. How does the Reward Halving affect the course? How many miners will cease operations? And what is the future inflation rate? Questions upon questions. We’re going in search of answers.
Facts about the halving
As a result of the BTC Halving Event, the Coin Rewards (the rewards for the miners) will be reduced from 12.5 BTC to 6.25 BTC per block mined. This firmly implemented mechanism has a direct impact on the inflation rate of the No.1 crypto currency. Currently it is 3.6 %, after halving it is about 1.8 %. In this context, Bitcoin’s reputation as a crisis-resistant “store of value” should be further strengthened. In the coronavirus pandemic, the “digital gold” conjured up an unprecedented performance on the crypto parquet.
Only 900 Bitcoins per day
After the next Bitcoin Halving, only 900 Bitcoins per day are mined. From this point on, a total of 3.15 million Bitcoins will still be available as “unmined”. Although the asymptotic growth rate means that the mining rewards will already approach zero growth in 2040, all Bitcoin currency units will not be fully mined until 2140. The norm of 10 minutes per block remains unchanged.
Less miners after halving?
According to the latest statistics, miners this week hoarded Bitcoin units worth over $10 million. According to this, many BTC miners are speculating on a rising price and profitable mining. In addition, the Difficultty has increased by less than one percentage point. The difficulty indicates the degree of difficulty in mining. During the process, the miners solve various mathematical problems. The higher the difficulty, the more difficult it is for the miners to find a block. In general, a high Difficulty indicates the good security status of a network. Due to halving events and increasing difficulty, many miners have to calculate exactly which coins they will mine in the future.
Bull run or slump?
Without the famous crystal ball, clear price forecasts are still very difficult to make. On the pros and cons list, several indicators speak for a bullish movement. Searches are at an all-time high and traditional markets are recovering from the effects of the coronavirus pandemic. Due to its impressive performance, the BTC is once again close to the magic 10000 USD mark. The mainstream should keep an eye on the Halving Event.
Bitcoin price current
At the time of writing, the BTC is quoted at USD 9728. This value corresponds to a daily loss of around 2.3 %. The bulls could not seriously attack the magic 10000 USD limit today. However, due to the high volatility, this development could turn out to be a short-term snapshot. Going below, the trend line at 9600 USD forms the new support line.
Are the old coins disappearing into thin air?
A Bitcoin Dominance Index of 67.2% speaks for itself. More than two thirds of the total market capitalization is in BTC investments. The hype surrounding the halving should not change this situation any time soon. For the Altcoins, the distribution means that they are strongly linked to the Bitcoin.