2020: The Crypto Market and Bitcoin halving

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Manwilly
Posts: 63
Joined: Wed Oct 23, 2019 11:42 am

Tue Mar 17, 2020 6:58 am

By : Abali Ikulu

This topic may sound strange for those who have less knowledge about the crypto world .
What is halving ? halving is the basis of economic model of this cryptocurrency because it guarantees the inssuance of the coin of a constant and decrease rate.
This mathematical system allows to control the inflation rate of the cryptocurrency unlike legal tender currencies,whose inssuance is at the pure discretion of governments and control banks.In other worlds the protocol underlying some cryptocurrencies is designed to prevent their price from failing drastically .Thanks to halving events,the availability of coins is never too high in relation to demand indeed ,we must remember that their value is a balance between supply and demand ,as in many other market ,if supply exceeds demand too much ,the price of a product collapses
Halving may also means ,the process of deducing the mining reward, this means that in May 2020 bitcoin miners will see their bitcoin compensation owed for their validation work on the blockchain halved.
The halving are schedule to occur 210.000 blocks, so 1 every 4 years or so, since the maximum bitcoin limit that can ever be created is set at 21 million,it is expected the last coins will be mined in 2140 as a result of 32 halving .
Normally crypto industry experts believe that halving the miner's fee from 12:5 to 5:25 will lead to an increase in bitcoin's demand ( and therefore its value ) due to a further limitation of supply ,in fact ,not only will the difficulty to mine bitcoin increases proportionally ( more power and expensive hardware instrumentation, higher power consumption .
The last bitcoin halving in 2016,after all caused the incredible peak at $20,000 in 2017. Most likely we won't see such a boom because in the meantime the market has matured and has caught the interest of big players in traditional finance , however,what has happened in the past leads us believe that we will see an increase in the value of bitcoin over the next year. great !
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