We’re on the verge of a truly historical event in the history of cryptocurrencies. The Bitcoin halving is scheduled for May 12, 2020, and it could be the one that makes or breaks the leading cryptocurrency in the world.
This will be the first block reward halving in Bitcoin’s history. It may end up being the most significant of all. The past two have done the cryptocurrency a solid. After a horrible 2019, Bitcoin has seen an impressive start in 2020, followed by a dip in price and resurrection. Just last week, Bitcoin’s price jumped 10%.
Amid the COVID-19 pandemic and a global economy hanging by a thread, Bitcoin is doing pretty well, and the halving can shoot it over the moon.
What is Block Reward Halving?
Crypto owners and traders surely know what halving is. During this event, miners get half the value of blocks per the usual. The current value of a block is 12.5 BTC – after the halving, they’ll only get half or 6.25 BTC per block. Although this doesn’t sound like a great idea, it keeps Bitcoin stable and effectively increases its long-term price.
This year’s halving will take place on May 12. With less than a week to the historic event, miners have begun hoarding and the hashrate jumped up over 140. The price jumped over $9K as well, sparking optimism in the crypto community.
Investors will need to keep a close eye on the hashrate and price right before and after May 12. The halvings that occurred in 2012 and 2016 were followed by huge price spikes. Essentially, halvings spark a long-term bullish run for the cryptocurrency. This is what’s expected of the May 12 halving – another rally that could put Bitcoin back where it belongs.
Market analysts have observed the behavior of miners and noticed that they aren’t selling fresh Bitcoins before the halving takes place. They are hoarding their Bitcoins which means they don’t need to cover operational costs at this point. Of course, many of them are hoping for a huge bull run after May 12. If Bitcoin shoots up to the moon and reaches the heights of 2017, hoarders will have millions of reasons to sell.
Could Bitcoin’s Price Double?
Jake Yocom-Piatt, Decred co-founder, says that he expects Bitcoin’s price to double very soon. The market dynamic shift before and after the halving could push miners to sell Bitcoin for double the price. In the short term, Yocom-Piatt expects the price of Bitcoin to go double. Nothing can be accurately predicted in the long term due to the volatile nature of cryptocurrencies.
However, with the stock-to-flow ratio increasing, Bitcoin’s long-term future looks bright and shiny. It would be very exciting to see if the third Bitcoin halving has the effect many are hoping for. The cryptocurrency needs a break after some hard times in the past year. If the price shoots up, it would spell great news for Bitcoin as more and more countries are warming up on the cryptocurrency.