There is a big event coming in 2020 which is set to redefine the Bitcoin landscape forever. By Investing.com Studios

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There is a huge event on its way in the coming months that could redefine Bitcoin and trigger a massive upward price movement as we witnessed in 2017.

What is this huge event I hear you ask? Well, that would be the Bitcoin ‘halvening’!

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When Bitcoin inventor Satoshi Nakamoto created the Bitcoin network, he designed it so that it would be self-sufficient and reliant on its users to continue to use the platform for growth and sustainability. This is achieved by the recording of transactions. More Bitcoins are then pumped into circulation by a process known as .

The way it works is that historic peer to peer transactions on the Bitcoin network are recorded on a ledger – the Blockchain. This is a chain of left behind by of recorded past transactions. This process is known as mining.

Miners are rewarded for their efforts in the shape of Bitcoin by keeping the network functioning and creating new blocks in the Blockchain ledger.

Mining is no easy feat, it requires high-end computers working at high speeds to solve these complex algorithms. The process has multiple purposes that benefit the Bitcoin community. 

The Mining process follows a few steps which include verifying a transaction. These transactions are then placed into a block. The head of the most recent block is inserted into a new block as a hash. Computers work to solve the ‘proof of work’ problem. When the equation is solved, a new block is added to the blockchain and the reward is given.

So why is this all relevant to how Bitcoin is going to perform in the coming months? 

Every 210,000 mined blocks the mining reward is cut in two. It is halved! Hence the term ‘halvening’.

Back in November 2012 when Bitcoin was still in its relative infancy, investors could pick up a whole Bitcoin for around $12.00. The first significant price climb was about to happen.

On November 27th 2012, the mining reward for creating a new block was an eye-watering 50BTC ($390,394 today), halved to 25BTC on the 28th.

At the time, the reward would have fetched miners $1,200 meaning miners would have to pay vast amounts in electricity bills for seemingly little reward. But this would soon change…

Post BTC Halvening 1 indicated that with a shortened reward, comes a price hike. Just 3 months after the 1st Halvening, BTC price rose from $12.25 to $32.67 a 166.69% price rise. Another 3 months later in May 2013, the price per coin sat at $127.18 – a 942% increase in valuation. Staggering.

Bitcoin started to gain momentum after this price rush and could often be overheard in conversations as curiosity surrounding the digital asset flourished. Fast forward to the winter 2013 and the price rush really started hotting up. At the end of November, BTC surpassed $1,000 for the very first time. 

Cryptocurrencies famed for their volatility showed us just why. The joyous scenes of the $1,000 price were short-lived for HODLERS as the price plunged to $164 in February 2014 with a resurgence some days later back into the $600 region. What followed can be described as a ‘lull’ for the next 2 years. It became evident that trading the asset could prove valuable, especially for scalpers within the Forex space.

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It wasn’t until late May 2016 that we saw a steady increase in BTC price. Halvening 2 was on its way and by now, Bitcoin was a household name with more and more investors keen to get a slice of the action.

July 9th 2016 – Halvening 2 hits. With BTC price at $652.14 per coin.

What followed in August 2016 was an unexpected downturn with $60 worth of value being wiped per coin. This was short-lived and the markets bounced back and bounced back with a roar.

Bitcoin shot to fame in the following months. Within 3 months of Halvening 2, BTC valuation increase reached 11.38% in October 2016

6 months on from the 2nd occurrence, BTC price entered 2017 at $1,021.83. A 56.68% price increase in 6 months! 

Early investors were now rubbing their hands together at the prospect of a further rise. And rise it did! 

On December 17th 2017 Bitcoin achieved its highest ever recorded price topping charts at $20,089.00 with a return of at 6,258.63%. Early investors were jubilant. The press went crazy. And the doubters had egg on their faces. What an incredible close to 2017 it was for HODLERS, investors, and went long on BTC. Seemingly BTC enthusiasts had ‘won’.

BTC did have its ups and downs since the ATH but we can see from the figures that the market tends to bounce back in a big way after the halvening. Bitcoin is a shrinkage market with a maximum supply of 21,000,000 BTC and only 15% left to be mined.

With the third halving approaching and lowering the reward to 6.25BTC will this push the price immediately before or after Half 3? 

With the most important date in Bitcoin looming, miners will be going into overdrive to grab BTC whilst the reward offering is still 12.5 BTC. 

How Bullish will the get and will we see a new, unprecedented, All-Time High?

Watch this space…

Source: Investing.com

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