The leading crypto Bitcoin half-year event will take place every four years to reduce inflation. While nothing will change about the basics of Bitcoin, halfway can have long-term effects on the price of the digital currency.
With the halfway event to take place, miners’ reward will be reduced from 12.5 Bitcoin to 6.25 Bitcoin per block.
New blocks occur by computers that solve complex math problems, and for now it takes about 10 minutes to extract a block. With halving, the supply will decrease significantly, and since the reward is halved, the chances of the leading crypto asset to profit in the long run will also increase.
Bitcoin is a limited asset of 21 million, and when this number is reached, the Bitcoin mining process will completely stop. Currently, there are approximately 18.6 million BTC in circulation, meaning the number of BTC waiting to be removed is less than 3 million. It is thought that the removal of all blocks with the halfway events will last until 2140.
While global stock exchanges were recovering after the coronavirus, Bitcoin, which is expected to serve as a safe haven like gold during most crises, suffered great losses. Analysts say that Bitcoin’s performance outperformed speculative bets based on inflation and financial incentive measures, but worse than gold and US Treasury bills.
Many people expect the halfway event to take place to have a dramatic effect on the price of Bitcoin. Bitcoin’s previous halves took place in 2012 and 2016. Long-term bullish trends started after these halves. However, the effects of the half-life effectiveness this time are not expected to be so high by experts. The biggest reason is that more users are involved in the crypto market than the previous halves.