We Are Halfway Through to the Next Halving, What to Expect? What Does the Historical Data Dictate? – crypto.news - BitcoinEthereumNews.com
The First Halving Bitcoin‘s mining reward was at 50 BTC per block in 2009. The first halving took place in 2012 and the mining rewards dropped from 50 BTC to 25 BTC. Prices began to rise after the event with investors realizing an 8,000% gain between November 2012 and November 2013. The coin’s issuance rate also decreased from 7200 BTCs to 3600 BTCs per day. By November 2013, the digital currency was trading at approximately $1,000. Things took a drastic turn in December 2013 when the coins price shed nearly 80% of its value. At the time, the price drop was attributed to the Mt Gox exchange hack which lost close to 740K bitcoins. Furthermore, the exchange was handling almost 80% of the transactions during that time. The ordeal therefore took a huge toll on the number one cryptocurrency. Bitcoin then embarked on a price reversal in October 2015, nearly two years later. The economics behind halving hope to not only slash the mining rewards, but also lower the coin‘s supply rate. In general, halving ensures that there is a stable supply of Bitcoin in the market. Historically speaking, the halving event had several impacts on the price of Bitcoin and here’s what investors