Many of us who still do not have the slightest of ideas about Bitcoin halving should read on this article to find more about it. The first thing you should know is what it is and how is it going to affect investors. This is the third time when Bitcoin halving is going to take place. Earlier, when this event took place, the prices of Bitcoin rose higher.
The halving of Bitcoin is done in order to reward the miners when they could successfully find a new block. The mining of Bitcoin, as we all know is a complex process. There is a lot of hard work involved in this process. Thus, to keep the Bitcoin network running, the system gives its employees the incentive for doing so. As the number of Bitcoin mining increases, the difficulty level to mine it also increases. This is done so that a large number of Bitcoins could not be mined as a safety purpose.
According to the Bitcoin halving 2020 chart, in this, you will see 21 million Bitcoins are mined. Based on the Bitcoin halving chart, the current reward which is given to the block finder is 12.5 BTC per block which is around $115,000. But this time, the reward is halved once again as it was done in the previous years and has been dropped down to 6.25 BTC per block.
How does halving affect you?
Those who already have Bitcoins need not specifically do anything when the halving is done. Neither they have to do anything before or after it is done because the crypto in your wallet will be as safe as it was earlier. You don’t need to worry that the value of Bitcoins in terms of the dollar will see a drastic change. The halving only cuts the reward into half but does not affect the value of Bitcoins in any way.
Should you buy before or after the halving is done?
As we all know that we could never have an idea about the price fluctuations of Bitcoin. Therefore, if you are planning to buy Bitcoins, then you must keep an eagle’s eye on the price trends. Since there is no surety about Bitcoin price, therefore, you can buy Bitcoins simply based on the guesswork.
When the halving took place in the previous years i.e. 2012 and 2016, the price of bitcoin seen a drastic drop in the former year and spike in the latter one. So, one can never be sure what is the best time to buy Bitcoins. If you are still struggling with the same question, then you may speak directly to an expert by dialing the Bitcoin Support Number.
Frequently Asked Questions
What is the Bitcoin halving?
Bitcoin halving is done in order to reward Bitcoin miners when they successfully find out a new block during the Bitcoin mining process. The halving word means that the reward is halved every year when the halving process takes place.
Will Bitcoin halving increase prices?
We cannot probably say that Bitcoin halving will increase the price or not. Because in the year 2012, when halving was done, the price was decreased while in the year 2016, the price got increased.
When was the last halving of Bitcoin?
The last bitcoin having was done in the year 2016. At this time, the reward amount for finding out a new block is 12.5 BTC per block. In the year 2020, it will be halved one more time.
Will Bitcoin price drop before halving?
We can never be sure about the price drop or price spike before the having process takes place. But, you should not worry as the price would not change overnight giving you a shock. You can always do guesswork by looking at the bitcoin price trends.