Golden Encyclopedia | What is Bitcoin Halving? Will there be a halving market?

This is the third halving since the birth of Bitcoin, and the output every 10 minutes will become 6.25 BTC. Everyone is talking about halving, so do you know about Bitcoin halving? Why do you have expectations for the "halving market"?

What is Bitcoin Halving

Miners mine a new block on the Bitcoin network every ten minutes. When a new block is dug out, the miner will get the corresponding block reward. The block reward is cut in half every 4 years. The current block reward is 12.5 bitcoins. After this halving is completed, the output every 10 minutes will become 6.25 BTC.

Golden Morning News | China has contributed two standards to the global blockchain State Grid established a blockchain company: 1. Chairman of the European Blockchain Center: China attaches great importance to blockchain and is worth learning from Europe.

2. The conceptual currency of the Chinese background public chain has risen sharply.

3. CCTV's "Oriental Time and Space" column popularizes cryptography and blockchain knowledge.

4. Li Ming, an expert from the Ministry of Industry and Information Technology: There have been more than ten blockchain standard projects in the world, of which two important standards are contributed by China.

5. Xiong'an Technology and Jianan Zhizhi entered into a blockchain strategic cooperation framework agreement.

6. The former vice chairman of the China Securities Regulatory Commission: Sichuan should use the basics of Bitcoin mining to study the relationship between blockchain and digital currency.

7. State Grid Blockchain Technology (Beijing) Co., Ltd. has been formally established.

8. Shi Yuzhu: Blockchain technology is not too difficult to tackle, but it is difficult to successfully apply it to various scenarios.

9. CCTV financial commentator: The application of blockchain is not to speculate in coins. I hope speculators can calm down.

10. Deputy Director of the State Administration of Foreign Exchange: The blockchain technology is being promoted in application scenarios such as cross-border trade financing.

11. The CCTV News Official Account issued an article introducing the future development and application scenarios of the blockchain.

12. Wang Xin, founder of Kuaibo: Don’t overestimate the blockchain today, but don’t underestimate the future of the blockchain. [2019/10/28]

At the beginning of the birth of Bitcoin, Satoshi Nakamoto proposed a simple and effective method to control BTC inflation - the reward halving mechanism (Halving). That is, the theoretical total amount of BTC is 21 million, and no new BTC will be generated after the distribution is completed. Through the reward halving mechanism, BTC can effectively curb its own inflation.

Analysis | Golden disk: STORJ rebounded slightly in the short term: Comprehensive analysis of the golden disk: STORJ received support from the upward trend line in the short term and rebounded slightly. MACD is about to walk out of the golden cross, and the upper pressure is 0.4891. [2018/8/7]

Why are you looking forward to the halving market?

Since its inception, Bitcoin has experienced two halvings. On November 28, 2012, the Bitcoin block supply was halved for the first time. Then in November 2013, Bitcoin ushered in a bull market, and the price soared to $1,000. On July 9, 2016, Bitcoin ushered in a new wave of halving. On December 17, 2017, Bitcoin hit a high of 19,783.06 USD. By the end of the day, Bitcoin was down to $19,500. Overall, Bitcoin’s price rose 1,824% between Jan. 1 and Dec. 17.

Jinse Finance live report Yuan Yuming, Dean of Huobi Research Institute: The development trend of blockchain will be better in the next 5-10 years: Jinse Finance live report, at the scene of the 2018 World Blockchain Summit held on April 3, Huobi Research Institute Dean Yuan Yuming said that the current blockchain is still separated by a "Microsoft" and an "Intel". It is necessary to improve the application of the underlying protocol and supplement it with related hardware before it can enter a period of rapid development like the Internet. In the next 5-10 years, blockchain will enter a good period. [2018/4/3]

Compared with the rise brought about by the previous two halvings, people are full of expectations for the halving market. However, what happened in the past may not necessarily happen in the future. The macro background, participants, trading institutions, and price levels of each halving are different. Before the halving, due to the high market expectations for the halving, a round of rise has already been spawned.

In addition, people look forward to the halving market, mainly because they think that halving will push up the currency price, because the scarcity of Bitcoin has increased: more and more users will continue to join the Bitcoin network, while the output of Bitcoin is decreasing; Although the halving may push up the price of Bitcoin in the short term, the combination of these two factors will drive the price higher in the long term. However, in the short term, the halving may bring more direct and serious consequences to another group of participants in the currency circle-miners. The halving could have fatal consequences for miners who have no capital and cannot survive the loss-making period smoothly.

Jihan Wu, chairman and CEO of Bitmain, said earlier that the factors affecting the halving and the actual situation will become more complicated. My personal point of view is that considering the distribution of existing mining machines and other factors, it is predicted that the computing power of the entire network will drop by 20% after the halving. Therefore, it will be a feasible and successful strategy to seize the opportunity of Fengshui, consolidate the advantages of mining efficiency and cost, and focus on long-term investment in the encryption industry.

In addition, William, the chief researcher of OKEx Research, previously told Jinse Finance that there is not much room for Bitcoin to fall. The latest mining machine Antminer S17 series that has been put into the market at present, its shutdown price is between 2,400 US dollars and 3,000 US dollars. After Bitcoin is halved, its shutdown price will be doubled. Yield, the shutdown price of Bitcoin will be between $5,000 and $6,000. This range is the psychological bottom price of Bitcoin. The current price of Bitcoin is around $9,000, so it is difficult for Bitcoin to experience a sharp drop like in March.

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