Bitcoin is 255 days away from its block rewards halving, which will decrease the BTC miners receive per block. Based on historical data, the coin experienced high levels of price volatility before and after the event, making it a good time for traders. But how will long term investors fare?
The Bitcoin halving
The halving is a regularly scheduled process which reduces the rewards miners get from finding a new block, subsequently decreasing the coin’s overall rate of issuance.
As first determined by Satoshi Nakamoto in the first iteration of the Bitcoin protocol, the block reward is cut in half every 210,000 blocks.
The procedure happens roughly every 4 years based on how quickly blocks are mined, with blocks found roughly every 10 minutes, totaling 144 blocks per day.
This procedure is scheduled to happen roughly every 4 years based on how the protocol is set up, with blocks found approximately every 10 minutes, totaling 144 blocks per day. With the current block reward of 12.5 BTC, this equates to 1,800 BTC in daily rewards excluding transaction fees, or about $19 million per day at current prices.
Around May 17, 2020, after block 630,000, miners who are currently awarded 12.5 new…
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Author: Ali Martinez