in 2020 “Bitcoin’s Upcoming Halving: Block Rewards to Decrease Once More in 2020”

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The highly anticipated Bitcoin halving event is just a month away. Scheduled for April 20, this event marks a significant decrease in miners’ block rewards from 6.25 BTC to 3.125 BTC, as displayed by The Block’s halving countdown. With approximately 4,450 blocks remaining until the event, it is estimated to occur around 8 a.m. EDT on April 20, based on Bitcoin’s average block generation time of 10 minutes.

Bitcoin halvings happen automatically every 210,000 blocks, roughly every four years, as part of the cryptocurrency’s programmed protocol. This results in miners receiving 50% fewer bitcoins as a reward for their mining efforts, while transaction fees remain the same. The inflation of block rewards has decreased from 50 BTC to 25 BTC in 2012, to 12.5 BTC in 2016, and most recently to 6.25 BTC on May 11, 2020. Ultimately, there will only be 21 million bitcoins in existence, and halving events will continue until the last bitcoin is projected to be mined in 2140, after which miners will solely earn from transaction fees.

The impact of Bitcoin halvings on the market has been significant. While not directly causal, these events often precede notable price increases in the cryptocurrency market. Jean-David P√©quignot, Head of Markets at OSL, attributes this to the event’s reinforcement of Bitcoin’s scarcity, resulting in increased optimism among crypto investors. A recent report from ETC Group suggests that the forthcoming halving may not be fully priced into the current market, with their analysis projecting a potential increase in Bitcoin’s equilibrium price to as high as $215,000 by 2028.

Despite recent fluctuations, with Bitcoin’s price dropping from $68,136 to $61,506 and then rebounding to $63,994, analysts at Bernstein view this dip as a buying opportunity ahead of the halving event. As we eagerly await the halving, let us keep in mind that the cryptocurrency market is volatile and subject to change. However, the potential for significant price movements cannot be denied.

Featured Image: Freepik @ fabrikasimf

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