Bitcoin ‘Halving' To Cut Down Production By 50% Next Year

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There is a lot of buzz in the cryptocurrency market, and most of the bitcoin buyers are tensed about what is happening next year. According to a report, bitcoin halving will cut down the production of the cryptocurrency by 50 percent. This will affect all the bitcoin miners because no one can control this process.

Bitcoin ‘Halving' To Cut Down Production By 50% Next Year

 

Nobody's in charge of this process and the rule is written into bitcoin's fundamental code by its maker who is widely known with its alias name Satoshi Nakamoto, over 10 years prior.

According to the report, the bitcoin halving is expected to happen in May 2020. This will cut down half of the number of new coins which were granted to bitcoin miners who were supplying cryptocurrency globally by decoding complex mathematical puzzles.

This is going to be a huge change in the cryptocurrency market at around $120 billion. Bitcoin market makes for several billion-dollars every year. With the news of bitcoin halving, miners have already started preparing for the price hike. The report suggests that the bitcoin players have also started calculating the fluctuation with the references of previous halvings.

Just in case you don't know, bitcoin halving happens roughly after four years. It makes sure to create a shortage of bitcoin and maintain the price expansion. With the halving there will be participants who will get profit and loss, miners and traders are trying to understand how the upcoming halving is going to impact them.

"This is the biggest question right now for most of the industry," CNBC TV quoted Eyal Avramovich, chief executive of MineBest, a company that mines bitcoin.

Halving is usually done to cut down the supply and increase the demand which will ultimately result in increasing the prices. According to the Reuters report, crypto traders and miners said that the May halving is going to be unpredictable in terms of trading volumes. However, the cut down of supply is expected to increase the prices more than any of the previous halving.

 

The last two bitcoin halving happened in November 2012, and July 2016 under which bitcoin was hiked around 80 times and four times respectively.

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