12th May 2020; this is the date many crypto investors and miners are talking about. Bitcoin halving has taken take place on that date.
Before we talk about the trends, let us see a little more about Bitcoin halving. Satoshi Nakamoto, the creator of Bitcoin, mentioned that there would be only 21 million BTC created. This means that once every 210,000 blocks, the source code has been programmed to cut the rewards of Bitcoin by half.
Coming back to the trends, Bitcoin halving occurred twice in the past. After its launch in 2009, the first halving occurred in 2012, and the next was in 2016. The graph both the times showed that the price of Bitcoin increased after the halving. Though it took quite a while, there was a definite up in the price.
Bitcoin touched $1100 in November 2013, a year after the halving when its price was around $12 in November 2012. Similarly, from being at $650 in July 2016, the crypto coin crossed $2500 in May 2017. It does appear as if a pattern has been set, and the most likely the same would follow each time the halving took place.
But, what we are experiencing today is different from the economic conditions back then. We weren’t fighting a global pandemic and a crashing economy as we are doing now. So, the question here is how much of it would impact the price of Bitcoin and how will investors and miners react.
Experts are of an opinion that Bitcoin would strengthen a lot more than it did previously. With the major Central Banks in most countries pumping money into the markets to keep the economy from tumbling down, inflation would make an appearance very soon.
More and more people are investing in Bitcoin to safeguard their money. It has been noticed that people are accumulating and storing Bitcoin for a while. We’ve talked about it more than once, especially when we’re considering the Bitcoin hash rate.
COO at bitFlyer, Joel Edgerton, spoke to Cointelegraph about Bitcoin Halving and hash rates. He was of an opinion that since Bitcoin’s birth lay in the fallout of the previous economic crisis, another such crisis is something that would work to its advantage. Its core strength lies in surviving and sustaining an economic crisis.
Bitcoin Halving and Hash Rate
Hash rate has been a vital indicator of the trend. Both the previous times, the hash rate was steady post halving, even though the loss of profits was unavoidable. But this time, things could be a little different and some miners might exit the platforms, even if Bitcoin is the safest place right now.
Too Many Factors
The overall satiation appears bullish for Bitcoin, which is a good sign. However, we cannot deny the difference in situations and factors considered to measure hash rates. The best thing to do would be to take a step back to see what would happen.
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