Bitcoin Halving_ Is it Still a Puzzle to Solve_
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The network-based on 2
blockchain commands 
the rate at which new 
bitcoins are mined. 
The software requires 
that miners in the 
network compete to 
verify the algorithms-
through the process 
called mining.
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Bitcoin Halving: Is it Still a Puzzle to 
Solve?
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How are the two significant rules related to 
“Bitcoin Halving”?
● It has been stated that once every 210,000 blocks are mined, the reward becomes 
half for the miners. It has been analysed that approximately six blocks are mined 
within an hour, that means the halving event takes place once every four years 
(around).
● if on the date each miner is harnessing a reward of 12.5 bitcoins for mining a block, 
after the next halving event the reward will be halved to 6.25 bitcoins and 
accordingly. The further can be understood by Crypto mining tutorial.
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But what is the need for halving the reward?
● Halving the reward sounds unfair for the miners!! But if the event 
does not take place, it may violate the basic principle of the 
market, i.e. of demand and supply.
● Thus, the halving of reward helps in maintaining the “ Value of 
Bitcoin” in the crypto market. In brief, it can be explained that if the 
coins are mined at a higher pace, then there will be tremendous 
flow or circulation of bitcoins in the market, which would ultimately 
result in a reduced value of crypto coins.
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● Bitcoin halving leads to slacking down the number of “new 
bitcoins” generated by the network. The action limits the supply of 
coins which may raise the prices if demand is strong.
● Vitalik Buterin, the leading developer of the Ethereum project, 
explains about the requirement of pacing down the distribution of 
bitcoins through the way of halving. 
● He further clarifies that the event takes place significantly to 
“control inflation”. Unlike the fiat currency, bitcoins are finite in 
volume so the extraction process must be controlled to maintain 
the value of the currency.
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Does Halving Affect Bitcoin Price?
Bitcoin halving has occurred twice in the past years. In the year 2016, 
after the event of bitcoin halving, the price of BTC remained in the 
range of $580–700 for several months, then it slowly rose towards the 
end of that year. The changes in the exchange rate of Bitcoin are 
assumed against the US Dollar. It was evidently noted that Bitcoin 
raised over 33x from its price before the second halving event.
Along with bitcoin halving, some other macroeconomic factors like 
uncertainty in the Chinese and European markets was considered as 
the reason for the price change of Bitcoin. 
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● Though the price swayed in the months before and after the last 
halvings but the reasons for the same are still not clear. Thus, there 
is ambiguity related to the price of bitcoin and bitcoin halving 
events.
 
● The analysts are still puzzled if the price would rise or remain 
stable. Though the shortage of bitcoin is bound to the raised price 
of Bitcoin, the answers remain unclear regarding the price effect as 
per the latest news on bitcoin.
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Will the Upcoming Halving Event be Chaotic?
The month of MAY is expecting the event of Bitcoin Halving when the 
number of blocks will hit 630,000. The event will result in the spike 
down of block reward for miners from 12.5 to 6.25 bitcoins. Bitcoin’s 
mining rewards’ event of halving is significantly seen as the bullish 
event that may aid in a massive amount of trade volume of BTC due 
to reduced inflation.
The crypto enthusiasts, as well as potential investors, are preparing 
themselves for the fluctuation of prices of BTC. It will possibly rise 
according to the analysts as the bitcoin supply will reduce; its demand 
is expected to rise. But still, the unpredictability hovers around the 
miners and traders of the crhyttppst:o//w mwwa.crrkypetto.knowmics.com/
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Conclusion
The bitcoin halving event, run for safe-haven assets during coronavirus fears 
and also the stronger and safer regulations of the crypto world can be 
considered as the reasons for hiking up the bitcoins price. Nevertheless, the 
event of halving cannot be stated as the sole reason for the price fluctuations of 
bitcoins according to the latest Bitcoin mining news.
Source
https://medium.com/cryptoknowmics/bitcoin-halving-is-it-still-a-
puzzle-to-solve-cd76639354b2
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