Bitcoin Halving 2020 | Bitcoin Halving Explained

[iam_aayushiJ]

Every four years after mining of 210,000 blocks, the Bitcoin halving event takes place, wherein the number of BTC generated rewards to the miners will be halved, i.e, divide the current one by 2, which basically will reduce from 12.5 to 6.25 BTC. Bitcoin halvings which have happened before always displayed far-reaching heights, hence the same is expected of the upcoming one.

To put it simply, the miners add new blocks of information to a database known as “public ledger”, wherein they get rewarded for their efforts to maintain and monitor the network of transactions. The miners would rely on fees as the BTC block reward decreases, as that helps them with the incentive for verification of transactions. The miners are the ones who would get mostly affected by Bitcoin halving event.

What is Bitcoin Halving?

Bitcoin Halving is the phenomenon by which the miner reward keep on halving, or decrease by 50% after every four years, which happens after mining 210,000 blocks. Satoshi, the creator of Bitcoin wanted to create a system that would be self-sustaining, similar to gold mining. So, in order to control supply, he came up with the method of Bitcoin halving.

Previous Bitcoin Halving Explained With Its Effect On Price:

BTC Halving in 2012
On November 28, 2012, on the production of 210,001 blocks, the mining rewards dipped from 50 BTC to 25 BTC. After a year or so, the Bitcoin price smashed to 1000 USD. As the market is ready and knows beforehand about the event, the impact on price is bound to be negligible, and hence will start applying the reduction rate to the price gradually.

BTC Halving in 2016
On July 9, 2016, the second Bitcoin halving took place, with an all-time surge of around $19,000, which reached 20,000 USD by December 2017. Before the 2016 halving, the BTC price fell as low as 200 dollars per coin and the mining reward dipped from 25 BTC to 12.5 BTC. But right after the halving took price, the price started rising exponentially.

Upcoming BTC Halving in 2020

2020 is most likely to see a similar change for the Bitcoin price, where the miner fee is going to be halved from 12.5 to 6.25. It is going to take place on May 27th, 2020. The crypto enthusiasts have participated on twitter saying they believe that the Bitcoin price will be skyrocketing during the BTC halving stage. To be precise, 61% of 2500 accounts believe that the price will soar from now until the halving, while 25% believe that the price increases will come after the halving.

What will be the impact on BitCoin Halving in 2020?

[Ailmand]

Well, most people are looking after the next halving which will take place a year from now. A early as 2019 the market price of bitcoin started recovering from the recent bull-market and upon looking at the historical chart and prices of bitcoin, many are speculating that the history will just repeat it self. Many are waiting for a bull-market this coming halving. Let's just hope that the halving this coming 2020 will make a new ATH on bitcoin price as how many people speculated.

[odolvlobo]

...
Bitcoin halvings which have happened before always displayed far-reaching heights, hence the same is expected of the upcoming one.
...

The times that the price has risen dramatically do not coincide with a halving. Doesn't that indicate the price rises are unrelated to the halvings?

These facts contradict the story of the halving-induced price rises:

The price rise after the 2012 halving started about a year before the halving and ended with a bubble shortly after the halving

The rise to $1000 started six months after the 2012 halving, after a steep drop following the previous bubble. If you attribute the rise to $1000 to the halving, woulding you also attribute the fall from $200 to $70.

The price rise to $20000 started about a year before the 2016 halving and the price actually fell during the month after the halving.

[CryptoBry]

2020 is most likely to see a similar change for the Bitcoin price, where the miner fee is going to be halved from 12.5 to 6.25. It is going to take place on May 27th, 2020. The crypto enthusiasts have participated on twitter saying they believe that the Bitcoin price will be skyrocketing during the BTC halving stage. To be precise, 61% of 2500 accounts believe that the price will soar from now until the halving, while 25% believe that the price increases will come after the halving.

Months away from the halving event, there is a continuous buzz on this as to what can happen to the price of bitcoin before, during and after. The main consensus is that this can trigger an upward movement for the price similar to burning tokens to minimizing the supply. Will halving be the catalyst that can push bitcoin way beyond the $20,000 zone...many are hoping this can happen and I am one of the many expecting the same. Whether we can be disappointed or not...that remains to be seen.

[traderethereum]

So we have a year to see if that will happens or not but I think it will happen and it will push bitcoin price to make ATH again.
The fewer rewards will cause the price to increase higher, and it's an economy law
When supply is decreasing, the demand will be an increase, and that will impact the price.
I believe that the price can increase more than $20k-$30k or more than that in the future.
I think Satoshi Nakamoto is an economist too because he knows about the economy law

[Kakmakr]

...
Bitcoin halvings which have happened before always displayed far-reaching heights, hence the same is expected of the upcoming one.
...

The times that the price has risen dramatically do not coincide with a halving. Doesn't that indicate the price rises are unrelated to the halvings?

These facts contradict the story of the halving-induced price rises:

The price rise after the 2012 halving started about a year before the halving and ended with a bubble shortly after the halving

The rise to $1000 started six months after the 2012 halving, after a steep drop following the previous bubble. If you attribute the rise to $1000 to the halving, woulding you also attribute the fall from $200 to $70.

The price rise to $20000 started about a year before the 2016 halving and the price actually fell during the month after the halving.

You make a very good point, but we normally see a slight increase in the price about a week or two before the Halving event starts and that might be directly attributed to the media hype that are built before the event happens.

I think people give more credit than credit are due for this event having a significant impact on the price. The impact is much smaller and it only last about 2 or 3 weeks. 

[Shatterlean22]

Actually I'm waiting for halving to take place in 2020 but I suspect the bullrun will take place a year later meaning by 2021 we will see a huge ATH like never before

[livingfree]

Actually I'm waiting for halving to take place in 2020 but I suspect the bullrun will take place a year later meaning by 2021 we will see a huge ATH like never before

You are following the pattern of 2016 halving and effect took place by 2017 which came the most popular bull run of all of time. Everyone believes that next year would be another year of bull and we're starting to see the signal as of these times.

So we have a year to see if that will happens or not but I think it will happen and it will push bitcoin price to make ATH again.

Not just a year but make it a year or two just like the pattern that we've seen last 2016-2017 which can coincides by 2020-2021.

[Astvile]

We are under currently at lets say a mild bull run plus the halving news that comes out this year I think the halving will push bitcoins bull run way longer compared to previous bull runs,one thing that may happen to is halving can help bitcoin slingshot in price and easily double the previous ATH

[kissme09]

This is a mechanism that makes mining more difficult, which means that bitcoin added to the supply becomes more difficult. Will Bitcoin price increase if Bitcoin Halving takes place? Does history continue to repeat over time? I believe that will happen and Bitcoin prices will rise sharply.

[Haunebu]

I think people give more credit than credit are due for this event having a significant impact on the price. The impact is much smaller and it only last about 2 or 3 weeks.  

Small impact? I disagree. As op explained, the upcoming halving event could push BTC to a whole new range due to the supply and demand logic. The market has already begun recovering currently and I am expecting a long term impact in this case.

Actually I'm waiting for halving to take place in 2020 but I suspect the bullrun will take place a year later meaning by 2021 we will see a huge ATH like never before

Doubt it. The bull run has already begun although it is moving at a slower pace when compared to the 2017 bull run. I am expecting BTC to touch $13K by the end of this year and it will most likely touch a new ATH before the halving event next year.

[Phantomberry]

Well in that case i will still hodl bitcoin and it is a good opportunity to buy as many as you can and i believe bitcoin could comeback it again. If you based on your pattern i'm agree with that it's not time that bitcoin will continue bullrun maybe 2021.

[XFlowZion]

I think the only way to make another great pump with that halving event is to create a huge FOMO. I'm very sure that once btc hits $15k or more than that, people will go insane just to buy btc again. It is certainly the only key to trigger the next all time high and I'm sure that before 2020 or in the first month of 2020, btc is already $50k.

[cryptjh]

We are still a year away from the next halving date, guessing on any price one year from now will be pure speculations, but the fundamentals have changed and we see a much bigger demand for bitcoins. And the exchanges are already now expected to be able to sell more bitcoins than the miners can mine after next halving. So this alone should lead to a much higher price for bitcoins in a year from now.

[Wingo]

I will be happy if these bull runs are the effect of this halving. Though this process is healthy for the price but it is not healthy for the miners as mining will be inefficient for sometime until the price goes up and lesser nodes means slower network.

Actually I'm waiting for halving to take place in 2020 but I suspect the bullrun will take place a year later meaning by 2021 we will see a huge ATH like never before

The has an effect on the market, the increase in supply of bitcoin will slow down. Some of these bull runs may or may not be a direct effect of the halving. Just like huge dumps that are caused by bad news spreading around the ecosystem, or some good news about legalization of bitcoin on some countries or some big companies buying bitcoin. The halving is not the only thing that influences huge price movement.

Months away from the halving event, there is a continuous buzz on this as to what can happen to the price of bitcoin before, during and after. The main consensus is that this can trigger an upward movement for the price similar to burning tokens to minimizing the supply. Will halving be the catalyst that can push bitcoin way beyond the $20,000 zone...many are hoping this can happen and I am one of the many expecting the same. Whether we can be disappointed or not...that remains to be seen.

Cutting the supply or slowing down the production while the demand is increasing will also pump the price. Bitcoin is made to have some characteristics of gold, to have a limited supply. Just like how the token burning on some alts are causing the price to go up, it is a proof that this scheme has influence on the price.

[Genemind]

Bitcoin halving is known to have a huge impact on the value of Bitcoin.
It's the phenomenon which holders even whales are waiting for. However, it will have a negative effect balancing the supply and demand of the market.
This event will surely bring a good profit for most traders.

[hugeblack]

Looking at the price rise from the Halving principle represents a failure to imagine how BTC works.
The historical review of how Bitcoin is rising after each Halving does not necessarily mean that it will happen again.
Currently, miners earn a lot of mining so there is no need for the price to rise to record highs in 2021.

I’ve created a topic about before, you can study it here -----> Less than 1 Year for Block Halving.

[ttcsalam]

Very nice post. Made with many information. There are a few differences. There is a slight difference from one year to the present. We have a logical explanation of the current information. But it has been good all over.

[Haunebu]

Looking at the price rise from the Halving principle represents a failure to imagine how BTC works.
The historical review of how Bitcoin is rising after each Halving does not necessarily mean that it will happen again.

This is all speculative and we are basically trying to speculate what the future holds for BTC and crypto in general and we all are aware of the fact that nothing might come out of this event though the chances of that happening are slim in my opinion.

Currently, miners earn a lot of mining so there is no need for the price to rise to record highs in 2021.

Miners earning a lot? What? The golden days of mining have faded and only a few miners earn big money these days. There is no point mining with a GPU currently if you ask me. Prices need to rise to help miner profits increase with time.

[Jace Lee]

...
Bitcoin halvings which have happened before always displayed far-reaching heights, hence the same is expected of the upcoming one.
...

The times that the price has risen dramatically do not coincide with a halving. Doesn't that indicate the price rises are unrelated to the halvings?

These facts contradict the story of the halving-induced price rises:

The price rise after the 2012 halving started about a year before the halving and ended with a bubble shortly after the halving

The rise to $1000 started six months after the 2012 halving, after a steep drop following the previous bubble. If you attribute the rise to $1000 to the halving, woulding you also attribute the fall from $200 to $70.

The price rise to $20000 started about a year before the 2016 halving and the price actually fell during the month after the halving.

You make a very good point, but we normally see a slight increase in the price about a week or two before the Halving event starts and that might be directly attributed to the media hype that are built before the event happens.

I think people give more credit than credit are due for this event having a significant impact on the price. The impact is much smaller and it only last about 2 or 3 weeks.  

Logically, the price has to increase with the halving right?

Halving basically reduces the reward to the miners. If miners are rewarded less then there can be reduction of miners due to maintanince cost and other reasons which in-turn may increase the congestion.

Also, the price increases as the supply is less and demand is more. Halving by halving the supply reduces and demand increases thus, the price hash to increase.

This is as per my understanding. Please do explain if you have other side of looking into the halving.