Articles by "Halving"
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di May 08, 2020 0

What is the Bitcoin halving?

If you are a crypto fan or even interested in the cryptocurrency industry then you will never hear about the next half of Bitcoin, unless you have lived under a rock several times. There is no doubt that it is one of the most anticipated events of the crypto calendar in 2020. But what exactly is that?

Half Bitcoin reduction is a recurring event where the amount of Bitcoin (BTC) given to miners is cut in half.

Where fiat currencies such as the Euro are issued by central banks, there is no central body that issues Bitcoin. Instead, it is coded into the Bitcoin protocol that the new Bitcoin is 'issued' as a gift to miners for validating 'blocking'.

Block on the Bitcoin blockchain is a file that stores 1MB worth of Bitcoin transaction records. In the case of Bitcoin, blocks are added to the blockchain through a consensus mechanism called proof of work (PoW). At PoW, miners compete to add the next block in the chain by using hardware resources to solve complex mathematical problems. This produces a hash - output of 64 characters that seems random.

After the hash has been found, the block is closed and cannot be changed. After successfully mining the block, the miner is given a newly created Bitcoin prize. This process occurs approximately every 10 minutes.

When Bitcoin was first re-released in 2009, the prize was 50 BTC per block, which by today's standards is a large prize, but termination is programmed to be carried out every 210,000 blocks that have been mined, which roughly takes four years with a refund less for the number of prizes.

In 2012, it was reduced to 25 BTC per block. Then in 2016, it was reduced to 12.5 BTC per block. Splitting these two years will see the block prize fall from 12.5 to 6.25 Bitcoin. The fourth split is expected in 2024 when the prize will fall to 3,125 new BTC, and so on for each of the next four years.

But how do we really have to do half of Bitcoin?

Can accept Bitcoin up to 21 million units with its default algorithm. No more than ever! There is no way to game the system here I'm afraid.

Bitcoin is operated on a deflationary model. This means, little by little, the less Bitcoin will be released over time until the supply stops completely. At present there are around 18 million BTC visited, which is about 85% of the total closed. The last bitcoin must be mined around 2140.

Read! Is Bitcoin Halving?

This is very different from fiat money, which uses an inflation model. Inflation is a model in which the central bank can assess additional currencies at will - thinking quantitative easing brought about in the global crisis, this is a practice that is often criticized and used widely as a major economic problem. Nobody can expand their Bitcoin inventory even if they don't want to.

Limiting has also proven a good way to encourage adoption. This should provide incentives for potential adopters & investors who are thinking ahead to buy Bitcoin before it runs out.

In essence, half is a transition programmed into the Bitcoin code that is designed to prevent conversion. This is designed to prevent miners for all Bitcoin too quickly and thereby transfer requests.

When should I receive the date?

Half reduction is programmed to be done after every 210,000 blocks that have been mined take about four years. After reaching the 630000 block which is currently expected to occur on May 12, 2020 at the current block production rate. Read! When Is Bitcoin Halving?

Will the price of Bitcoin go up or down?

In the past, half meant an Increase in Price. The first half reduction occurred on November 28, 2012, a compilation of one BTC was only worth $ 11. The second reduction occurred in July 2016. Bitcoin held prices around $ 600 - $ 700 before firing up to $ 20,000 at the end of 2017

The cryptocurrency space is very different now and much more mature, with half the impact more difficult to predict. With many institutional investors and products such as Bitcoin futures which means deductions for inventory are far more likely to be bought than previously thought. There are also cryptocurrency besides Bitcoin Cash and XRP for sale, offering more competition for investors compared to before.

Read! What is the Bitcoin halving?

If you look at Twitter crypto there must be two camps where half the price will fall to the moon and the other half. Of course there is debate for that, the debate about the economy is currently in a very dangerous position with the ongoing global pandemic. What you sit in this camp is a very exciting time to be part of the new financial system and watch from the sidelines.
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di May 07, 2020 0

Bitcoin Halving Soon! Time to Buy?

Many people have anticipated the halving event as a time when the price of Bitcoin will skyrocket, especially people who had "stuck" and still survive (HODL) until now. The hope with halving, the price of bitcoin can reach ATH at the end of 2017, almost 20,000 USD, even more.

But, is it true that halving makes bitcoin prices go up right away? Are we wise if we immediately buy up bitcoin now? To find out the answer, let's analyze one by one, starting from the historical, fundamental, to technical.

When is Bitcoin halving?

History of Price Movements When Bitcoin Halving


Judging from its history, halving did make the price of Bitcoin rise spectacularly.

The first halving on November 28, 2012, made the price of Bitcoin go up by more than 9000%. Whereas in the second halving in June 2016, the price of bitcoin rose nearly 3000% thanks to Halving.

At first glance, halving gives us the impression that the price of Bitcoin will rise due to reduced mining rewards, making supply less, demand remains / increases, so that on an economic basis, prices will rise. However, whether it will be so?

We need to know and examine, that the price increase after halving does not just happen. After halving in 2012, it took more than 1 year for bitcoin to achieve a fantastic increase.

Whereas in 2016, it takes 500 days before the price of bitcoin reaches its ATH.

In fact, we can find something unique if we look at the price action of bitcoin when we are close to halving.


When the first halving is finished (November 2012), we can see that the price is actually still and tends to go down for several weeks (watch the blue area), before it rises fantastically.


Similarly, the second halving in 2016, Pay attention to the blue area where the price of the BTC actually dropped for the first few weeks before he rose

Did not rule out the possibility that the price of bitcoin after the third halving (estimated 20 May 2020) will experience the same movement: down or tend to be silent for several weeks, then go up quite far.

If we are not careful and as long as we buy bitcoin in the hope that it will rise during halving, then it can be a problem in our emotions because expectations are too high, or worse, we can lose money.

Why Can After Halving Price Even Down?

It is true that halving makes rewards as supply from bitcoin go down. But the factors to consider are the miners.

Because of their rewards or rewards in the form of bitcoin decline, they will not be as profitable as before, especially with the same electricity price.

Therefore, after halving occurs, the miners will likely "rest" or slow down first. We also need to consider small miners who can lose, even go bankrupt because the reduction in rewards from halving is not worth the cost of using electricity and their equipment is exorbitant. This makes the bitcoin network activity faltered.

Only later after a while, the miners will start to rise again, start bitcoin prices rise again as in the previous halving-halving.

Then, Where to Bitcoin Prices Ahead and After Halving in 2020?

The author tries to provide an analysis using technical analysis. At the moment, bitcoin is heading towards the retest area of ​​the falling wedge pattern which broke through last January 2020.

It is possible that bitcoin can go down to the green area (the zone between 6800-7500) before continuing the increase.

Depending on how fast the price of bitcoin moves, the decline to the green zone could have just happened after halving. Prices can also go up before halving, then go down to the area under the green zone.

Basically we still have plenty of time before halving, there are still more than 70 days left per writing this article. Prices can still go up or down.

How to invest in Bitcoin Towards Halving ?!

Basically, if you want to invest, don't be greedy and understand the risks. As a good investor or trader, keep an eye on price movements and make sure to enter in the right and good entry. Don't just put all the money into crypto.

Hopefully, with this halving bitcoin, we all profit a lot in cryptocurrency!
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di May 07, 2020 0

Is Bitcoin Halving?

Bitcoin has a maximum inventory of 21 million coins and its network is guaranteed by the miners. Miners are special hardware that uses a consensus mechanism called "proof of work" to verify each block of bitcoin transactions. Miners are rewarded when they 'find' blocks with newly created bitcoin. This is called a block prize and this is how the new bitcoin is released into the system.

New blocks filled with transactions are added to the Bitcoin blockchain about every 10 minutes and miners who verify each block receive a block prize. The current block prize is 12.5 bitcoin per block. On average, 144 blocks are mined per day. 12.5 new bitcoins are generated with each block. This gives an estimate of around 1,800 new bitcoins that are mined per day.

The number of new bitcoins made through block prizes is reduced by half every 210,000 blocks, about four years. This is known as Bitcoin Reducing. In 2009, the prize for mining Bitcoin began at 50 BTC per block. On November 28, 2012, the first half of bitcoin occurred to reduce mining prizes to 25 BTC. On July 9, 2016, the second half brought mining prizes down to 12.5 BTC. The next halve will be the third half, which is expected to occur on May 4, 2020. At that time the prize block of 12.5 bitcoin will be reduced by half, to 6.25 bitcoin.

Every half reduce the level of new Bitcoin that goes into supply until no more new Bitcoins are created at all in 2140. By 2140, half to 64 and the last occurred and no new Bitcoin will be made. This process is coded in the Bitcoin code by its creator, Satoshi Nakamoto. This mechanism reduces the total supply over time.

How will half affect miners?

The main source of income for a miner is the block gift you get when you 'find' a block. The amount of Bitcoin mined on the block can then be sold with fiat currency. This means that the actual profitability of a miner depends very much on the price of Bitcoin and how much Bitcoin is mined. The mining process has several costs for miners, such as hardware costs and electricity costs. So, when half occurs miners will get 50% less Bitcoin per block mined, while the costs remain the same. So to compensate for this and maintain the same profitability, the price of Bitcoin needs to be doubled.

This is most visible when looking at the minimum price of Bitcoin required for mining continuity - the price for a miner to return all costs including the purchase of a machine. This minimum price will now increase significantly, by itself it doesn't have to be a bad thing, but it is something that needs to be taken into account if the price of Bitcoin goes down. If the price of Bitcoin falls below the minimum price for a miner to be profitable the miner will turn off the engine, and when that happens, network difficulties will go down.

According to the law of supply and demand, a scarcity of Bitcoin supply will cause an increase in Bitcoin demand, which leads to an increase in prices. But this is only in theory, and no one can predict when this will happen. What miners can do is stay ahead of the problem and find ways to use mining hardware that is most efficient and has low electricity prices.

Elite Mining takes into account these future events by ensuring a good offer for equipment and very low electricity costs. This helps keep the minimum price of Bitcoin that EMI needs is very low, making us very competitive.
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