Bitcoin halving is one which happens once every 4 years, halving have been of more interest to cryptocurrency investors over the years.
The word Halving refers to the number of coin miners receive for adding new transactions to the blockchain cut in half, bitcoin halving took place on the 12th of May 2020.
The first ever halving started in November 2012, the second in July 2016, the third in may 2020 and the next halving is set to take place in May 2024.
When bitcion was first released the reward was 50 BTC per block. Halvings are programmed in to take place every 210,000 blocks mined, Swanepoel (Luno CEO) says.
Why all the Hype Around it?
A simple terminology says if the supply reduces and demand remains constant or increases, prices will increase, therefore a reduction in supply leads to a boost and increase in bitcoin, all thanks to halving.
Observations after the first halving was that the bitcoin price soared from $11 per bitcoin to $1,100. The second halving saw the price rise from about $700 to $20,000 in 2016 and the third halving 7,000 to anywhere between $10,000 and $12,000 after the halving
What impact does halving have on bitcoin?
The impact of halving to bitcoin is one that newly mined bitcoins per day will fall from about 1,600 to 800 bitcoins and the daily revenue of miners will reduce by half. This decrease in the price of bitcoin mining tightens supply and will lead to a bullish market and an increase in the price of bitcoin.