Bitcoin or cryptocurrency was introduced in 2009 by Satoshi Nakamoto. In its early years bitcoins had little value and also no one want to trade them. Nowadays when we look back to those days then we can say that bitcoins come a long way. Because they have about $38,795 price nowadays. As the demand and trading of bitcoin or cryptocurrency increases day by day so the circulatory bitcoins are decreasing. And this decreasing bitcoins cope with the bitcoins halving. But is this bitcoin halving affect its mining and price? So let’s have a look at the fact what is the price impact of bitcoin halving?
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What Is the Price Impact of Bitcoin Halving?
Before getting into the real conversation let’s have a look that what is bitcoin halving? As the number of people who use bitcoin or cryptocurrency or miners, increases day by day and also more and more people want to get more and more bitcoins. But the bitcoin agencies have to cap the total number of bitcoins up to 21millions.
So they have to cut or half the number of bitcoins that they are giving to miners as a reward to maintain the total bitcoin numbers. And this is known as the bitcoin halving. And this halving takes place after every four years.
Now let’s have a look at the price and miners’ behavior because of this cryptocurrency halving.
Impact On Price:
Until now bitcoin’s three halving took place as the last one occur in May 2020, and the next one is accepted in the year 2024. But all these three bitcoin halves have a positive effect on crypto prices.
Let’s discuss it in more detail and have a look at its price change from the first halving.
First Halving: During the first halving the price of cryptocurrency increases by a hundredfold to its initial price which was about $11.
Second Halving: This halving took place in 2017, which trigger the price of cryptocurrency up to $20,000.
Third Halving: The recent third halving which took place in 2020, trigger the bitcoin price up to $30,000.
So the bitcoin halving has a positive impact on its price.
How Does Bitcoin Halving and High Crypto Price Affect Miners?
However, this is an important question to discuss after the positive impact of bitcoin price AUD. At first let me introduce the cryptocurrency or bitcoin miners, the people who use the bitcoin network and use the cryptocurrency called miners.
In short, halving bitcoins has an inverse effect on miners’ behaviors. However, there are several reasons for this. Let’s have a look at all of them.
- Bitcoins halving means that the miners have to get fewer bitcoins as a mining reward. A miner gets a mining reward when he forms a blockchain after creating the blocks of transactions. And fewer reward bitcoins could be less attractive to miners
- Moreover, the high crypto price can affect the interest of new and small miners. And it is possible that they can withdraw from bitcoin mining and start mining other currencies.
What Will Be Crypto Price Future After Next Bitcoin Halving?
As after every halving the rewarding bitcoins halve, so currently, miners get 6.25 bitcoins after every successful mining. And the amount of these bitcoins would be half in the next bitcoin halving which is expected in 2024.
As the previous bitcoins halving put a great impact on crypto price so the same is expected after the next halving. But as we know that bitcoins halving also affects the miners’ interest inversely and they can withdraw themselves from bitcoins mining. And this would directly affect the crypto price and network globally. So we can say that forecasting the behavior of crypto prices before the next halving is of no use.