With the Bitcoin Halvening almost upon us, we at Bitcoin Maximalist decided to take a look at what the likely outcome is for Bitcoin in the ensuing days, weeks and months.
While nobody can be certain what will happen, we can look at data from Bitcoin’s two previous halvenings to help make an educated guess.
As Mark Twain once said, ‘while history never repeats itself, it certainly does rhyme,’ and that has been so true for many things throughout history.
So with the words of the famous author ringing in our ears, let’s take a look at what could happen to Bitcoin after this realignment of rewards.
What Is The Bitcoin Halvening?
Every four years or so, or every 210,000 blocks to be precise, Bitcoin goes through a halvening process in which the supply of newly minted bitcoins, which are created with every block as a reward for the miners, are halved.
When Bitcoin first launched, the block reward was 50 BTC, and then on 28th November 2012 it was halved to 25 BTC, before being halved again to 12.5 BTC at the last halvening on 9th July 2016.
This Halvening event will continue every 210,000 block until the last fraction of Bitcoin is mined into creation, in around the year 2140. This means that every time a halvening takes place the supply is cut by 50%.
Those of you that know about supply and demand will already know that that if the demand remains the same, which it has no reason not to, a cut in supply will trigger a positive effect in the price.
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