Bitcoin’s historic ‘halving’: Why crypto experts are expecting a second explosion in value
Bitcoin could be back on the agenda for plucky investors after the infamous cryptocurrency experienced a triggered “halving” event (yesterday) morning.
At 5.23am AEST (Tuesday 12 May, 2020) the cryptocurrency produced its 630,000th block and triggered the third-ever halving event in Bitcoin’s 11-year history.
In a nutshell, Bitcoin “halves” roughly every four years as a way to reduce the reward given to programmers who “mine” the currency using high-powered computers and complex algorithms.
Bitcoins are mined by specialised computer hardware which solves algorithms (or “blocks”) on a central banking sheet known as a blockchain.
To keep the value of existing Bitcoins, every 210,000 blocks the reward given for mining halves as a way of artificial inflation.
Only 21 million Bitcoins will ever be generated by the network, prompting some experts to believe that a second bull run of value is on the cards.
“History teaches us that after this post-halving drop in price, there is a subsequent bull run,” CEO and founder of deVere Group Nigel Green said.
“Previous Bitcoin halving events have prompted impressive price climbs. The 2016 halving triggered a 300 per cent jump in the value of Bitcoin.
“There is no reason to believe this time the market will not respond with a longer-term upward trajectory.”
Currently Bitcoin is trading at just under A$13,500 per coin. If Mr Green’s forecast of a 300 per cent rise comes true that value could skyrocket up to more than $40,000 per coin.
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