In less than two weeks, the Bitcoin block reward halving will take place and BTC miners will receive half the reward going forward after May 12. Since ‘Black Thursday’ (March 12), bitcoin prices have gained 103% since then rising from $3,800 to $7,750 per coin. With the halving fast approaching, many cryptocurrency proponents believe the event will create significant demand for the digital asset bringing the price back to all-time-highs.
The Great Bitcoin Halving
One of the most anticipated events in Bitcoin history is taking place on or around May 12, 2020. The event is called the “Bitcoin Halving,” and it means that the block reward miners receive for finding blocks on the BTC chain will see the reward slashed in half. When the BTC network first launched, miners got 50 BTC per block found, and in 2012 that reward changed to 25 coins per block. Then in July 2016, miners saw the second halving, which saw rewards cut in half from 25 coins to 12.5 BTC per block. In less than two weeks, the 12.5 coinbase reward will be chopped in half, and miners will only obtain 6.25 coins per block plus transaction fees. The reason this happens is because Satoshi Nakamoto created a mathematical and predictable system that encourages scarcity and savings.
On Tuesday, April 28 there are 18,349,900 BTC in circulation and there will only be 21 million BTC in existence after the last coin is mined. Between now and the halving, roughly 25,000 virgin coins will be obtained from mining before the event. BTC still has an inflation rate per annum of around 3.65% per day, with $13,923,540 worth issued per day. If prices were to remain the same as today, the $13 million will be chopped in half and the per annum inflation rate will drop to 1.8%. However, the 18.3 million BTC in circulation is not a correct representation of what’s really in circulation. Millions worth of BTC have been lost or stolen, and many investors are holding their BTC for dear life in hopes the price will spike…