It took just over 10 years from we could first read the whitepaper about Bitcoin to the blockchain network software system code release back in 2009. Bitcoin was quickly created right afterwards. Counting back to that they, Bitcoin has seen the light of day for 4,141 days. Impressive for the first real borderless payment network without any centralized control system and with a new kind of money – a digital only currency.
Exciting times ahead of us. In less than 1 day, we will witness the 3rd Bitcoin halving of the remaining 33 left. An important part of halving is the reduction of income for the miners. The reward is cut from 12.5 to 6.25 Bitcoins. This is a huge drop in value. The currency is growing, meaning that more people are involved in mining, but less Bitcoins are distributed for this purpose per day (24 hours) among these people. In less than 24 hours, only 900 BTC will be issued per day, as opposed to 1,800 BTC per day. This must, partly, push the price up just to ensure that the miners, now receiving half, will still get a reasonable pay. Halving happens after every 210,000 transactions and will stop around year 2140. That is a long ways away. As there is a limited amount of Bitcoins, the systems squeeze the price upwards. The largest amount of Bitcoins, about 88%, were issued within the first 11 years. The remaining 12% are spread over about 120 years.
We have seen halving before, twice. What everybody wants to know, of course, is where will the price go after the halving? Will it go up or will it go down? Historically, it has gone up, and it has gone up big time. The first halving occurred on 28 November 2012 and the price went as a rocket right after. The following year, the price went from less than $20 to over $1,000, giving Bitcoin owners an annual return of 8,000 percent. That is impressive. The second halving, on 9 July 2016, saw similar results. A year after Bitcoin’s second halving, the price went 280 percent. It went less, but the price reached the all-time high of about $20,000 at the end of 2017. Bitcoin is currently trading at around $8,500. In other words, plenty growth opportunity just to reach the all-time high.
If we look at where people are from that search for the work “Bitcoin halving”, we find Malta, Saint Helena and Luxembourg. Three places that fairly regulate cryptocurrency. All these places, and the rest of us, try to predict where the price will go after the halving. Nobody knows, but, one thing is certain, that we will all follow what is happening the next couple of hours to see if our investments are kept safe and to hope for a great start on the next 12 months.