07/05/2020
Bitcoin Halving 2020 Q&A
Bitcoin supply is finite; there will only ever be 21 million bitcoins in existence. This month, we’ll see bitcoin miner’s rewards halve from 12.5 to 6.25 for every block mined. This is the third such occurrence, and will mean just 900 bitcoins will be mined daily from the May halving until the next such event in 2024.
How different will the bitcoin halving be this time round, compared to
“Whilst the mechanisms of this bitcoin halving will be the same as previous ones in 2012 and 2016, the development stage at which crypto finds itself today is very different.
The demographics of crypto investors have changed, there is more talk of crypto regulation and even central banks are launching their own central bank digital coin projects. The amount of institutional investment in crypto has increased and we are seeing more real-world use cases to spend crypto, including buying burgers at Burger King.
Add to this the current impact that COVID-19 is having on the world and people’s investment choices, and it’s not hard to see that the context in which this bitcoin halving will occur is very different from its previous
Will the halving of bitcoin impact the price of other cryptoassets? If yes,
“Bitcoin is still the most dominant cryptoasset in terms of market cap and popularity to date and accounts for around 65% of total crypto market share. As such, other cryptoassets tend to track its price movements. We have seen price correlation between some cryptoassets and bitcoin over the years, but as more investors realise all cryptoassets have their own use case and not all are designed to be currencies, this correlation is weakening.”
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