Cryptocurrencies and Bitcoin are close together as the Bitcoin halving process is set to take place this week, which could have a profound impact on the crypto market.
If we talk about the history of the Haung process, it has become a norm for Haung to take place every 4 years. Cryptocurrency pundits have predicted that bitcoin hoarding could happen on Friday night or early Saturday morning.
What is Bitcoin halving?
Halving refers to a change in Bitcoin’s underlying blockchain technology that slows down the creation of new Bitcoins, a process started by Bitcoin creator Satoshi Nakamoto to limit Bitcoins to their fixed number. Can be maintained.
Satoshi Nakamoto set the maximum amount of bitcoins at 21 million while 19.5 million bitcoins have already been mined and hence more bitcoins worldwide can be mined. , they are down to 1.5 million.
This is the fourth time in Bitcoin’s history that the halving has been decided. As a result of the 2012 halving, the $50 Bitcoin mining reward was reduced to just $25. As a result of the current halving, this reward will be limited to $3.125.
Effects on the crypto market
Experts believe that the resulting impact on the crypto market will be positive. The value of bitcoin will increase and this will encourage new investors in the cryptocurrency market i.e. people will start investing more and more money in bitcoin.
In this regard, Raj Gopal Menon, Vice President of Wazirx, says that after the halving, the movement of Bitcoin will increase in the right and left direction, which will prepare the market for a sudden increase in Bitcoin prices. Historical data shows that Bitcoin prices rose even before the halving.