As Bitcoin’s halving approaches, supporters and skeptics alike are debating what kind of impact it may have on the coin’s value.
1. What is Bitcoin?
Bitcoin was created by Satoshi Nakamoto, and is a peer to peer, trustlees. borderless (and almost feelers) electronic cash that is generated by miners whose computers perform complex calculations that validate the transactions on the blockchain, a public digital ledger.
The miners compete with each other to earn newly-issued tokens known as a block reward.
2. What is the halving?
A halving happens every four years and is a planned reduction in rewards miners receive
In 2009, miners received 50 Bitcoin per block, reduced to 25 in the first halving, in 2012, to 12.5 in 2016, and will fall to 6.25 tokens in the next.
Miners earn less Bitcoin reward with each halving.
3. What does the halving solve?
The halving prevents inflation by slowing the pace at which Bitcoin are created, so as to not outstrip demand.
4. When is happening?
11th or 12th of May 2020.
Predicting the exact date is difficult due to the time it takes to generate new blocks.
5. Do halvings always boost Bitcoin’s price?
In 2012, Bitcoin‘s went up 80X within 12 months of the halving, and 10X after miners’ rewards were halved in 2016.
7. If I own Bitcoin, will I have more in USD after the halving?
Most analysts are saying yes, but anything is possible with Bitcoin!