Bitcoin halving: what influences the growth of cryptocurrency

CONTENT

  • Soon bitcoin will outlive the third halving.

  • The first crypto rally was not triggered by a reduction in reward to miners.

  • Halving was often just an additional incentive to return to previous highs.

International consortium of news organizations developing transparency standards.

There are only a few days left until the largest Bitcoin event, but does the reduction really affect the price of the asset so much??

Factors that Determine the Price of Bitcoin? 💲💲

The third halving of bitcoin halving halving the number of new coins created and earned by miners in half. This happens approximately every four years and … More bitcoin will take place after 1000 blocks. Presumably, the reduction in the reward to miners from 12.5 to 6.25 BTC per block will come already ~ May 11-12.

Many cryptoinfluencers like to attribute the explosive rise in the price of bitcoin to halving, since it is after the reduction that, as a rule, there is an exponential rise in price.

Before the emission of bitcoin reaches its end (the maximum number of coins issued is limited to 21 million units), bitcoin will survive a total of 64 halving.

First pricing

Bitcoin history began on January 3, 2009 with the so-called Genesis block. It was the very first block mined on the bitcoin blockchain network..

It is important to understand that halving does not just happen at random. The process of reducing the reward to miners, called halving (hence, by the way, the name halving – halving) is spelled out in the Bitcoin source code and is strictly performed every 210,000 blocks (every four years)..

It is important to understand that the first Bitcoin crypto rally began long before the first halving appeared..

Bitcoin’s pricing goes far beyond paying for pizza in May 2010. For the first time, bitcoin received its value in October 2009, when on the now closed New Liberty Standard platform, the price of the cryptocurrency was set at $ 1 = 1309 BTC (a copy of the closed site can be viewed here).

Then the bitcoin rate was calculated by dividing one US dollar by the average amount of electricity consumed for its mining.

Bitcoin Halving Explained Simple – Does it Affect Bitcoin’s Price?

And although the actual turnover of cryptocurrency between “traders” began with the now closed Mt.Gox, it was the New Liberty Standard website that set the direction of the cryptocurrency asset pricing.

Until the first halving in history, three more years.

Attracting attention

On February 9, 2011, the actual price of bitcoin on Mt.Gox reaches the $ 1 mark announced in 2009 by the New Liberty Standard, and the very next day the official bitcoin website Bitcoin.org can barely cope with the onslaught of users who learned about the cryptocurrency from mentions in Slashdot, Hacker News and Twitter.

In April of the same year, TIME publishes an article about bitcoin, and in early June of the same year, the price of bitcoin on Mt. Gox soars by 900% up to $ 10. True, already on June 8, the price for one bitcoin soars up to $ 31.91, and after a few days falls to $ 10.

Until the first ever halving, bitcoin remains another whole year.

On November 27, 2012, the first halving in the history of Bitcoin takes place, reducing the reward for the mined block from 50 to 25 BTC.

And only on February 28, 2013, the bitcoin price overcomes the threshold reached back in 2011 at $ 31.91.

Bitcoin halving: what influences the growth of cryptocurrency

On April 1, 2013, the bitcoin rate soars to $ 266, however, due to technical problems on Mt. Gox and BitInstant, within a few hours it quickly drops to $ 76 and returns to $ 160. In November of the same year, the price soars to $ 1242.

[In fact, even a few articles will not be enough to cover the full significance of 2013 in the formation of bitcoin. If you are wondering how a bug in the Bitcoin protocol created a random hard fork or how the co-founder of Ripple got involved in a scandal with the hacking of the first Bitcoin exchange – write to us in the chat on Telegram hashtag #cryptostory]

Arms race

In July 2016, the second halving is activated, reducing the mining reward from 25 to 12.5 BTC per block. Then Bitcoin is still trading in the $ 600 range..

Bitcoin was able to overcome the record mark of 2013 only in March 2017, reaching $ 1290.

From May (excluding September) to December 2017, the world’s most famous cryptocurrency was in a state of unprecedented rally, skyrocketing to $ 19,783 in December.

As can be understood from the surface archive, bitcoin halving undoubtedly takes place in the pricing of the asset, but the growth did not start with a reduction in the reward for miners..

Halving was often only a catching-up factor in increasing the value of the cryptocurrency. From the first days of its existence in exchange trading, bitcoin was driven, as a rule, by manipulation, speculation and fear of missed opportunities..

Whether the story with the growth of bitcoin will be able to repeat itself once again, we will find out in the next couple of months, if not years.

What do you think? Does halving really affect the rise in the price of bitcoin? Share your thoughts with us in the comments.

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Bitcoin halving: what influences the growth of cryptocurrency
Bitcoin halving: what influences the growth of cryptocurrency
Bitcoin halving: what influences the growth of cryptocurrency

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