Bitcoin halving | Bitcoin artificially scarce again – how is the price developing?
An important event for Bitcoin fans:
the reward for creating new Bitcoins has been halved. After the last halving, the price had increased almost sevenfold within a year.
The so-called halving of the world’s largest cryptocurrency Bitcoin took place on Friday. This is reported by the data and analysis company CoinGecko. Bitcoin fans had been eagerly awaiting the event. It takes place approximately every four years and has an impact on Bitcoin production – and thus indirectly on the value of the cryptocurrency.
For example, at the time of the last Bitcoin halving in May 2020, the Bitcoin price was at $8,602, according to CoinMarketCap – and climbed almost sevenfold to almost $56,705 by May 2021. However, other factors also played a role.
There have been three halvings so far. That is not enough to give a meaningful forecast for further price development, says Adam Morgan McCarthy, a research analyst at Kaiko.
Bitcoin halving | The background to the phenomenon:
Bitcoin miners use specialized computers to solve complicated mathematical puzzles; and if they solve one of them, they will receive a set number of Bitcoins as a reward. Now the reward has been halved. This also reduces the number of new Bitcoins coming onto the market. This means that the supply of Bitcoin available to meet demand is growing more slowly.
