Bitcoin’s halving is here

Bitcoin enthusiasts everywhere are currently holding their breath for an event called the halving, which many traders expect will bring a sharp upsurge to the cryptocurrency’s price.

Let’s break it down… The halving is an adjustment to bitcoin’s blockchain that cuts the incentive for bitcoin miners – basically how fast new bitcoins are issued – in half roughly every four years. This is one of bitcoin’s rules set in stone by its anonymous creator, Satoshi Nakamoto.

• The halving is aimed at guaranteeing an eventual maximum of 21 million bitcoin in existence – a feature Nakamoto implemented to temper inflation and make each bitcoin more valuable over time due to scarcity.
• New bitcoin will eventually stop being created and issued to miners altogether, though that isn’t expected for at least a century.

The (potential) impact: In the past, halving events have been followed by a significant rise in the price of bitcoin, though analysts are divided over whether that will occur this time around.

• After bitcoin’s previous three halvings, its price increased by 2x-10x within the next eight months.
• However, some analysts say the upcoming halving event comes under different circumstances than previous ones, and caution that it could actually cause bitcoin prices to decrease.

👀 Looking ahead… The halving is expected to occur either today or tomorrow, depending on the rate at which new bitcoins are created.