Within one week, the Bitcoin network will undergo a major change. Bitcoin block reward halving is scheduled to happen on the 9th of this month. Once it happens, the mining rewards for discovering each new block by the miners will be reduced to 12.5 freshly minted bitcoins from the existing 25 bitcoins. This will effectively reduce the amount of new bitcoins introduced into circulation.
The creator(s) of Bitcoin have deliberately incorporated this feature to ensure the value of the digital currency doesn’t drop and to delay the time taken to mine all 21 billion bitcoins. It will also promote competition among miners to gain the maximum share of the newly minted digital currency until bitcoin adoption reaches a critical threshold after which it will become self-sustainable. However, the drastic cut in the rewards also comes with own set of drawbacks.
What Does Halving Have in Store for the Bitcoin Price?
The Bitcoin community is already speculating the effects of halving on the value of bitcoin, mining activity, and other aspects of the digital currency ecosystem. The opinion of the community is divided about the pricing aspect, as some believe that the value of bitcoin will start to soar after halving, while others