Bitcoin Hashing Speed Reached A New Record On The Eve Of Halving
The crypto community with bated breath expects a bitcoin halving, which will occur literally in 8 days. The first quarter of 2020 was very busy for the flagship cryptocurrency: there were both ups and sharp drops, so many investors associate Bitcoin price fluctuations with its upcoming division in two.
According to Satoshi’s concept, the number of Bitcoins is limited to 21 million. After every 210,000 generated blocks, the reward for the extracted cryptocurrency is cut in half. Thus, starting in 2009, remuneration decreased from 50 BTC to 12.5 BTC in 2016. The upcoming Bitcoin halving can dramatically affect miners and the state of the cryptocurrency market as a whole.
Halving Bitcoin in May will be unique
The previous phases of halving favorably affected the position of Bitcoin in the global financial infrastructure. For example, the price of Bitcoin rose from $12 to $1,100 between 2010 and 2012. Thus, a trend is visible: with a decrease in supply, demand increases.
How Bitcoin will react to the upcoming halving cannot be accurately predicted based on the unique current market conditions. 3 years after the previous halving, a lot of altcoins appeared, and they are trying to catch up with the flagship cryptocurrency. Also, this factor should not be discounted with the spread of COVID-19 and the weakening of traditional markets.
Bitcoin hash rate increase
On the eve of the May halving, the miners increased noticeably intensified. Now the hash rate has reached a new record high of 140 EH/s.
Many analysts draw a parallel between the held halving of Bitcoin cache (BCH) and Bitcoin-SV (BSV) with the upcoming split of bitcoin in half. In particular, Diego Gutierrez Zaldivar, CEO of IOVlabs noted:
Bitcoin May Become a “Lifebuoy”
The spread of COVID-19, stimulating the economy with piece wise cash injections, threatens inflation shortly. Disappointing forecasts regarding the development of the global economy in the post-coronavirus era already sound at the government level in many countries. In such conditions, Bitcoin can assume the role of a key asset.
Thus, very soon we will witness a halving that is unique in the history of Bitcoin.