As you all know, Bitcoin mining and its supply are finite. The network will stop producing the Bitcoin once 21 million coins are produced. That’s why Bitcoin is referred to as “digital gold”. Bitcoin halving is an event that halves the rate at which new Bitcoins are created. It occurs once every four years. The last time it occurred was in 2016. Now it is scheduled for 2020 May.
Bitcoin To Become Superior To Gold After 2020 Halving!
What are the changes happening after the Bitcoin halving? Are you eager to know? Read this article till the end. We promise that at the end of the article you will realize the importance of halving and whether the Bitcoin becomes superior to gold after 2020 halving. Let’s take a look.
What is Bitcoin Halving?
Bitcoin halving is the process of reducing Bitcoin mining to 50%. That is, for every transaction miners will get coins 50% lesser. It is scheduled to occur once every four years. This limits the supply of Bitcoins. Thus the price of the coins increases due to the increased demand.
The next Bitcoin halving is scheduled for 18th May 2020, when a total of 630,000 blocks had mined. During the last halving that occurred in 2016, it’s seen that the price surged from $576 to $650.
The working of the Bitcoin halving is based on the software in Blockchain technology. It dictates the rate at which the new Bitcoins are created.
What happens to Bitcoin after Bitcoin halving 2020?
The second Bitcoin halving occurred in May 2016 bringing a boom in the Bitcoin price. Does Bitcoin become superior to gold after the 2020 halving? Let’s check.
Hash Rate Reaches All-time High
Halving helps Bitcoin to become superior to gold. Miners will secure the Bitcoin by validating each transaction. With Bitcoin halving, that’s going to happen in May 2020, the new coin issuance drops to 6.5 from 12.5.
Thus the availability of the coins decreases to half. This leads to an increased demand for Bitcoins which again leads to a boom or spike in the Bitcoin value.
The Purity of Cryptocurrency Can Be Easily Verified
The purity of the cryptocurrency can be verified without any difficulties and expenses, unlike gold. This can be achieved by the advent of technology. After the Bitcoin halving that is going to happen in May 2020, it opens the door to more advanced technologies.
When Bitcoin was launched in 2009, its developers already specified that the token supply should be limited to 21 million. For this, the supply of Bitcoin halves every 4 years. Nowadays, Bitcoin and gold are compared in several contexts.
Like Bitcoin, gold must be obtained through mining. The only difference is that gold must be mined physically and cryptocurrencies through virtual mining of special computer encryptions.
In short, the halving, regulation, and volatility make Bitcoin, the new decade’s digital gold. The main risk events surrounding the cryptocurrency this year are the halving scheduled in May and the regulations. But both result positively the Bitcoin by boosting its price even higher than gold.
As we promised while starting the article, we hope that you got the answers to the questions in the introduction section.
It’s sure that Bitcoin will become superior to the gold after Bitcoin halving in 2020. I hope you realized the importance of Bitcoin halving. If you have any suggestions or opinions regarding this article titled “Bitcoin to become superior to gold after 2020 halving” please let us know through the comment section given below and we will try our best to reach out to you.