Bitcoin Halving and cryptocurrencies, what is it?

Many projects in the crypto world space have very nice philosophical, technological, and economic proposals, attracting a greater number of followers interested in fast-growing business opportunities.

One of the most popular measures to guarantee the aforementioned is a mechanism called "Halving", a process that will take place within the Bitcoin Network in a few days.

paper money eye watching

What is the Bitcoin Halving?

Miners receive a reward for every block that they process. Every 4 years, this reward is halved. The bitcoin community calls this event Halving. Its purpose is to difficult the mining of new bitcoin since there is a limit for the total amount of circulating BTC. The Halving would take place every time the network mines a total of 210,000 blocks by design. Although the blockchain generates a new block every 10 minutes, estimations agree that by 2140 all bitcoin will be mined.

Unlike fiat money, Bitcoin and many other cryptocurrencies have deflationary properties, since there are a finite amount of tokens. This deflation makes the coin to gain value over time until the hard limit programmed. These properties are not unique to bitcoin. All the cryptocurrencies devived from it have the same halving mechanisms: Litecoin (LTC), Bitcoin Cash (BCH), Bitcoin SV (BSV) y ZCash (ZEC). All of them use the proof of work (PoW) algorithm.

After each Halving there was a significant drop in hash rate in the short term. Analysts highlight that one of the aspects that drove up the price of bitcoin had to do with the diminishing offer and increased demand, which generated greater public interest in Bitcoin, further promoting its adoption as a means of payment, and a valuable investment. Despite the hash rate drop in the short term, precisely because of the little feasibility of these operations for people with less powerful devices, after each Halving, the levels increased again in the medium term due to the launch of new types of specialized hardware (ASICs). Such equipment optimizes electricity consumption levels and exponentially increases the number of calculations to be made per second, being much more profitable for operators than those of previous versions of the hardware.

COVID-19 Epidemic Map

Halving and Pandemic effects

What will happen? Nobody knows. In the past, prices before the two previous halvings soared bitcoin price. But this time is different. The COVID pandemic adds lots of uncertainty to the current scenario. From oil to stocks every financial asset has been affected by the crisis. But at some point, cryptocurrencies outpaced oil and stock performance in terms of rising prices and lower volatility. Currencies, such as Bitcoin and Ether, begin to recover favorably and are heading towards the levels before their fall, while the oil and industrial markets continue to suffer the consequences of COVID-19. The aftermath of halving and the coincidence in time with the COVID-19 crisis will be very interesting for cryptocurrencies. Economic effects like skyrocketing debt, inflation (or deflation) effects in fiat money will test the ability of crypto to make its point as a form of payment or value storage.

  • Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • RSS



The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation, or needs. All statements made on this website are made in good faith and we believe they are accurate and reliable. This website disclaims all and any guarantees, undertakings, and warranties, expressed or implied, and shall not be liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or consequential loss or damage) arising out of or in connection with any use or reliance on the information or advice on this site. Before acting on this advice you should consider the appropriateness of the advice, having regard to your objectives, financial situation, and needs. Where any product(s) is/are detailed on this website, you should obtain a Product Disclosure Statement relating to the product(s), consider its contents and obtain professional advice before making any decisions. The information on this website is not a substitute for financial advice. Past performance is not indicative of future performance. Cardano™ is a trademark of Cardano Foundation, CHE-184.477.354, Dammstrasse 16, 6300 Zug, Switzerland, in Switzerland and other countries.  Copyright © 2020 by Vantica Trading. All rights reserved.. Madrid  Spain.

We receive, collect, and store any information you enter on our website or provide us in any other way. In addition, we collect the Internet protocol (IP) address used to connect your computer to the Internet; login; e-mail address; password; computer and connection information and purchase history. We may use software tools to measure and collect session information, including page response times, length of visits to certain pages, page interaction information, and methods used to browse away from the page. We also collect personally identifiable information (including name, email, password, communications); payment details (including credit card information), comments, feedback, product reviews, recommendations, and personal profile. Our website is hosted on the platform. provides us with an online platform that allows us to sell our products and services to you. Your data may be stored through’s data storage, databases, and general applications. They store your data on secure servers behind a firewall. All direct payment gateways offered by and used by our company adhere to the standards set by PCI-DSS as managed by the PCI Security Standards Council, which is a joint effort of brands like Visa, MasterCard, American Express and Discover. PCI-DSS requirements help ensure the secure handling of credit card information by our store and its service providers... Please read our complete  Privacy Policy© 2021 by Vantica Trading,

[Valid RSS]