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Bitcoin Halving Inches Closer; Crypto Community Awaits May 12th

Bitcoin halving

As Bitcoin halving inches closer, the crypto community keeps a keen eye on the price metrics and supply parameters. 

The crypto world is bracing itself as the much-awaited Bitcoin-halving is inching closer. In less than two weeks, the third-ever Bitcoin halving will occur on the Bitcoin Blockchain, exactly at 13:30 UTC on May 12. 

Bitcoin Halving effects

Currently, Bitcoin miners earn a reward of 12.50 BTC per block mined. Once the halving occurs on block 630,000 on May 12th, this reward will be cur down into half, i.e 6.25 BTC. Moreover, the new circulating supply will also become limited, thus resulting in price inflation. 

Previously, there had been two halving events – one on November 28, 2012, and the other in July 2016. For the former, block rewards plummeted from 50 BTC to 25 BTC, and further down to 12.5 BTC for the latter. Quantum Economics founder Mati Greenspan recently tweeted that Bitcoin’s annual inflation rate will change from 3.65% to 1.85 post halving. 

Interestingly, there is a hard cap on the total number of Bitcoins that could ever be mined i.e 21 million. Hence, after the upcoming halving, Bitcoin will become even scarcer potentially costlier. 

Is it possible to determine the effect of halving on BTC price?

Recently, Bitcoin’s price surged from $7,500 to roughly $9,400 within a few days. Some crypto experts have suggested that the current uptrend is due to the upcoming halving. They believe that people are buying more, fearing a reduced supply post halving. 

The common logic says that BTC’s price will increase after halving, due to reduced supply. However, it is quite tough to predict the exact trend. 

In an interview with Decrypt, CEO of Binance.US hinted that the immediate effect of halving is tough to judge. She commented, “We saw in 2016 that the halving itself was not an instantaneous reaction, but 18 months later we had the largest rally we’ve seen.”

May 12th is indeed an important day for the crypto community. It will be quite interesting to note the future path of bitcoin post-halving. We will keep you posted. 

 

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