Yesterday evening there was an event for the Bitcoin. Its last date was 2016. The Halving. In the Bitcoin network a total of 630,000 so-called blocks were generated. There are the so-called miners. These are ordinary people like you and me who use their computers or interconnected computers to generate new Bitcoin data blocks through pure computing power. These miners are rewarded for this by being assigned new Bitcoins (BTC). A reward for work done, so to speak. The total number of Bitcoins is mathematically fixed at 21 million.
Reward for Bitcoin Miners is halved
To prevent this quantity from being reached too quickly, there is the halving. The halving describes the halving of the reward amount for the miners. If they were rewarded with 50 Bitcoins in the beginning, the last time they were rewarded with 12.5. Since tonight it is only 6.25 Bitcoins. So it becomes less attractive for the Miners to produce the world’s most famous crypto currency, which should slow down the multiplication to the maximum amount. The halving of the “reward” is firmly anchored in the Bitcoin code. It happens every time 210,000 new blocks are created.
This scenario of possible lower activity of re-producing this crypto currency could make Bitcoin more attractive to speculators and investors looking for alternatives for their personal investment. This is because limited commodities such as Gold and also the mathematically limited BTC are attractive. Everything that is limited in quantity, such as sports cars, which are produced in limited quantities, can increase significantly in price. And this is always the case when there is a lot of demand for this particular asset. The more buyers there are with no or only slowly growing supply, the higher the price.
Strongly rising price?
And what did the Bitcoin do from yesterday to today? Yesterday, the price was (roughly speaking) around the levels of 8,700 Dollars. Today, it was also in that range (currently 8,724 Dollars). In the chart we can see the development of the Bitcoin price in US Dollars since the year 2012. The crypto industry portal BTC-Echo also titled today “After the Halving – Waiting for the Explosion”. Very briefly in the first hours after the halving, the price explosion does not happen. But the scenario that the changes described here will make this best-known of all crypto currencies more attractive could still boost the price. Only in days, or weeks, or months? One should keep an eye on this market.