Forward towards the halving!

What can halving mean for the bitcoin price? Historically, it has gone up, up, up …

Many have probably noticed that those who recently anticipated a larger price movement for bitcoin were just right. It’s just that the movement did not go in the direction most of us wanted…

It’s sad, of course, we at BTCX think so too. But in the long term, we may see a completely different picture. Because next year, bitcoin’s third reward halving will occur.

If, you have not had the opportunity to get into how these halvings work, and what this might mean for bitcoin and the future of the bitcoin system, let’s take a super-short metaphor/explanation here:

If you see the bitcoin network as a building, where people constantly build new rooms, and every new room is a new bitcoin. Then you can say that about every ten minutes or so an architect shows up and submits new blueprints to more “rooms” and so the construction of more and more rooms continues.

Over time, this architect gets cheap…

When the bitcoin system was started, there were 50 rooms on the blueprint every time the architect appeared. But as of November 28, 2012, there were only 25 rooms. And from July 9, 2016, the blueprint only contained no more than 12 and a half rooms… And on or around the 14th of May next year, the architect will cut the blueprint in half again and there will only be 6.25 bitcoin released at every 10 minute interval from then on.

What is really exciting is what the halvings, historically, have meant to the value of bitcoin. On the graph here you can see how the price trend has been good just before a halving, but really rushed off right after.

It will be exciting in May…