Bitcoin Hit $10,000 But here is why you're expected to bet on it right now


Bitcoin's soared this week, climbing to $10,000 and reviving the market ahead of next week's closely watched halving.

The bitcoin price has now reversed all of its crash losses from coronavirus, rising almost 40 per cent since January 1—and 140% after the march low of $3500. Placing it on track to be one of the best-performing assets of the year.

With the bitcoin halving supply crunch approaching, some have cautioned that the price of bitcoin may be heading for a cliff edge.

Last week, Michael Maloney, the chief financial officer of Coinmint LLC, a Puerto Rico-based cryptocurrency mining company with operations in upstate New York, examined data from the Bitcoin blockchain and estimated the halving would take place around 1 a.m. New York time on Tuesday, May 12. But on Wednesday he looked again, and it now appears to be arriving on Monday around 7:45 p.m.

What is the Bitcoin Halving (Halvening)?


New bitcoins are issued by the Bitcoin network every 10 minutes. For the first four years of Bitcoin's existence, the number of new bitcoins issued every 10 minutes was 50. Every four years, this number is cut in half. The day the number of halves is called a "halving".

In 2012, the number of new bitcoins issued every 10 minutes dropped from 50 bitcoins to 25. In 2016, it dropped from 25 to 12.5. Now, in the 2020 halving, it will drop from 12.5 to 6.25.

What is the Significance of the Bitcoin Block Halving?


The halving decreases the number of new bitcoins generated per block. This means the supply of new bitcoins is lower.

In normal markets, lower supply with steady demand usually leads to higher prices. Since the halving reduces the supply of new bitcoins, and demand usually remains steady, the halving has usually preceded some of Bitcoin's largest runs.

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In the image above, the vertical green lines indicate the previous two halvings 2012-11-28 and 2016-7-9. Note how the price has jumped significantly after each halving.

The 2020 halving will happen on block 630,000 projected to be on May 12th 2020.

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