In less than 260 days from the time of writing, bitcoin will half. This will result in a decrease in the bitcoin miners receive per block. Based on historical data though, the leading cryptocurrency has gone through high levels of volatility before and after the event, which would make it a good time for traders.
The process of the halving has already been set and will reduce the rewards miners receive.
So as was put in place by Satoshi Nakamoto (not you Craig) in the iteration of the bitcoin protocol, the block reward is cut in half every 210,000 blocks.
This results in a halving every four years (on average), based on how quickly blocks are mined. If you take into consideration that blocks are found every ten minutes, this results in 144 blocks every day.
As reported by CryptoSlate:
“This procedure is scheduled to happen roughly every 4 years based on how the protocol is set up, with blocks found approximately every 10 minutes, totaling 144 blocks per day. With the current block reward of 12.5 BTC, this equates to 1,800 BTC in daily rewards excluding transaction fees, or about $19 million per day at current prices.”
There are several different predictions that analysts have given on what the halving will mean for the space. Even though we’re just under a year from the event here’s what history has shown us:
“Bitcoin price action is characterized by steep retracements before the beginning of a new bull market. In fact, the bear market of 2011 bottomed at a 93.70 decline and the one in 2013 concluded with an 86 percent correction. Meanwhile, the most recent macro bear trend ended after an 84 percent pullback from the peak.
During its bull markets, Bitcoin tends to retrace multiple times, which helps maintain a healthy uptrend. From the low of $2.01 on Nov. 18, 2011 to the high of $268.67 on Apr. 10, 2013, BTC had two significant retracements that averaged 47.80 percent. During the 2015-2017 bull trend, this cryptocurrency had 11 corrections averaging 34.60 percent. So far, from the low of $3,148.33 on Dec. 15, 2018 to now, Bitcoin has had 4 significant retracements that averaged 23.90 percent.”
It will be interesting to see how this event plays out when it occurs in May next year. For more news on this and other crypto updates, keep it with CryptoDaily!