What does Bitcoin Halving bring (2020 Bitcoin Halving)?

08/17/2023 16:55 • Tech Ticker • 90 views

What does Bitcoin Halving bring? With the continuous development of Bitcoin and the gradual acceptance of the market, more and more people are paying attention to the price fluctuations of Bitcoin. According to data from Coinmarketcap, the price of Bitcoin was around $59,000 as of January 12, 2020. The third halving of Bitcoin production in 2019 occurred due to a reduction in mining rewards, resulting in a large number of new coins being generated and mined every year, but these projects did not create new sources of income. Therefore, for investors who want to invest in Bitcoin, they must consider this part of the income. Currently, many people in the market are very positive about investing in Bitcoin. They hope to increase their investment portfolio and improve its value through this way. At the same time, they also need to understand the risks and returns of this project from an investment perspective. This is also why many people believe that Bitcoin will have a significant increase in value after it is recommended.

2020 Bitcoin Halving

Editor’s note: This article is from 8btc news (ID: bitcoin8btc), written by Fang Qinyu, and published with the authorization of Star Daily.

As 2020 is coming to an end, 2019 is a year of Bitcoin halving. On January 12, 2018, amid extreme panic in the global financial market, the People’s Bank of China began to gradually increase its support for cryptocurrency exchanges and announced a series of measures to deal with the impact of the epidemic. From the beginning of 2020 to now, Chinese miners have transferred from more than 30,000 Ant S19 Pro models, machines with a capacity of more than 500T, and large computers with a capacity of more than 1000T to more than 40,000 new and old computers. Due to the continuous rise in the price of Bitcoin and the increase in mining difficulty, the price of BTC has rebounded significantly. However, since June last year, the price of Bitcoin has been in a low-level oscillation, and it fell below the $20,000 mark again at the end of May this year, reaching a low point of $3,200. There is still about 20 days before this bull market, and it is expected that around mid-July, Bitcoin will experience its second halving event, reducing the block rewards from 12.5 to 6.25. If we look at historical experience, the term “halving” first appeared in mid-2014. “In the bear market of 2018, do we all know that the bear market is coming?” At the end of 2019, US President Trump formally signed an agreement for a $1.9 trillion stimulus plan, allowing investors to invest in digital assets. According to this plan, when the inflation rate drops, bond yields will increase by 50%, which means that the Federal Reserve will continue to print money. “I don’t think this timeframe will last much longer.”

Although Bitcoin’s performance in the first half of this year was not as expected, it has the same scarcity as gold and is accompanied by some problems:

First, the supply is limited; second, the uncertainty and instability of supply and demand relationships have led to a general lack of demand in the market. Therefore, people are increasingly concerned that the insufficient supply of Bitcoin may affect its value fluctuation. On the other hand, Bitcoin is seen as a means of hedging against risks in traditional economies as a new emerging thing, and so is Bitcoin, as there is not much reason behind this claim to support this view. In addition, Bitcoin is also subject to many criticisms, such as lack of liquidity, inability to trade, and so on. Although Bitcoin is a relatively safe investment tool, many institutions still consider Bitcoin as a scam or Ponzi scheme.

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What does Bitcoin Halving bring (2020 Bitcoin Halving)?

2020 Bitcoin Halving

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