⚡What is Bitcoin Halving that is Happening in 15 Days?

Whats is bitcoin halving?

Hello Roqqian

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I hope you're staying home and safe. 🏡

Bitcoin halving 2020 is a few days around the corner and you will asking what it’s all about.

What is the Bitcoin Halving (Halvening)?

As you might already know, mining is the only process through which new Bitcoins get created. New Bitcoins are issued by the Bitcoin network every 10 minutes when a gigantic puzzle is solved.
Once in every four years, this number is cut in half. The day the amount halves is called a "halving" or "halvening". In a few days, the number of bitcoins (BTC) entering circulation every 10 minutes will drop by half, from 12.5 BTC to 6.25 BTC.

The amount of supply entering the system will suddenly shrink, but the demand will, in theory, stay the same, possibly driving up the cryptocurrency’s price. As such, the event has inspired passionate debate about bitcoin price predictions and how the market will respond.

How Halvings Affect The Price of Bitcoin

The block reward halving tends to have long-term positive effects on the price of Bitcoin.

Why does this happen?

There are a lot of theories, but one common one comes down to simple supply and demand:
If fewer bitcoins are being generated, the newly increased scarcity automatically makes them more valuable.

But the truth is, no one knows what's going to happen. Bitcoin has seen two halvings so far;

The 2012 block halving was the first halving and happened on November 28th, 2012. The halving block was mined by SlushPool by someone using a Radeon HD 5800 miner.

New BTC Per Block Before: 50 BTC per block

New BTC Per Block After: 25 BTC per block

Price on Halving Day: $12.35

Price 150 Days Later: $127.00

2016 Halving which is the second halving, occurred on July 9th, 2016.

New BTC Per Block Before: 25 BTC per block

New BTC Per Block After: 12.5 BTC per block

Price on Halving Day: $650.63

Price 150 Days Later: $758.81

Regardless, the main takeaway from this information is this: There is a clear correlation between bitcoin reward halving and price volatility afterward. These supply side changes happen every 4 years, and keeping that in mind can help build a better picture of what influences the price of bitcoin at different times.

-Micheal from Roqqu