Bitcoin’s unprecedented halving event happens approximately every 4 years or so, dependent on how many blocks are successfully mined. After 210,000 blocks have been mined, Bitcoin’s underlying code will enforce a halving event, splitting the existing assets in half. The next time this will happen in the crypto world is predicted for around mid-May 2020. Many Bitcoin miners have been looking forward to this event for quite some time.
What Does This Mean for Bitcoin?
The cryptocurrency market acts like many other markets around the world in terms of the supply and demand principle. For Bitcoin’s pre-determined code that knocks existing assets in half when they reach 210,000 mined blocks, it alters market resources. While a halving event breaks Bitcoin tokens in half, consequently it also decreases their overall market value. This cause and effect procedure can have different results for investors at that time, including:
• Some investors may want to sell assets before they lose significant value in the market halving event
• A sudden dump of Bitcoin tokens from investors may decrease their current value
• Halving event would reduce the overall value of their portfolio assets
• Creating spikes in new investments as investors want to ‘buy low’ when Bitcoin’s price is half of the previous value
• New interest in Bitcoin as low prices attract more investors will essentially cause prices to rise again
There are many predictions as to how Bitcoin’s tokens will react mid-May based on the 2 past halving events. While historical data is helpful for educational guesses, it isn’t guaranteed, and the world economy is significantly different now.
Current Worldwide Bitcoin News
With less than 2 weeks until the next halving event, Bitcoin has dominated the cryptocurrency world headlines. One of these breaking news stories pertains to Bitmain, a privately-owned company in China that designs technology for Bitcoin mining. Within 5 years of inception, they grew to the largest designer of circuit chips to complete Bitcoin mining. They have had their share of controversies surrounding the business throughout the years, including present leadership disputes. Corporate headlines like this can discourage users who wish to deal with their products and services, impacting present Bitcoin mining.
How Will the Upcoming Halving Event Affect the Crypto Market?
With this upcoming splitting of Bitcoin tokens available world-wide, many investment gurus are speculating what the future will hold. While many anticipate a result similar to the last 2 halving events, others aren’t so sure, considering the world’s economy. At this point and time, it’s just a waiting game for cryptocurrency investors and Bitcoin enthusiasts alike.
One thing is certain; the crypto world is looking forward to seeing how this halving event will alter the market. This upcoming Bitcoin occurrence is not taken lightly, and it will indeed have some effect on cryptocurrency. Even with the naysayers depicting a negative outlook, there are many more predictions that are assured the opposite will happen. For now, investors and Bitcoin enthusiasts will have to wait until those next 210,000 blocks are mined for investment certainty.