Bitcoin halving is one of the most highly anticipated events in the Bitcoin (BTC) calendar.
According to Google Trends, search queries for the term “bitcoin halving” has spiked tremendously over the last couple of months. Analytic data from the website available April 14 shows that community interest has surged, 16% higher than witnessed in the run-up to the last ‘halving.’
Bitcoin’s issuance policy is coded into the protocol and happens after every 210,000 blocks. Every four years mining rewards reduce by half, meaning that miners get less BTC for a successful transactional block post the event.
This will the third Bitcoin halving event since Satoshi Nakamoto introduced the cryptocurrency in 2009. The first miners earned 50 BTC per block produced. Currently, miners earn 12.5 BTC for every block in roughly 10 minutes. The rewards will reduce to 6.25 BTC this May- according to a countdown that should be around May 12 or 13- when miners hit 210,000 blocks since the last halving in 2016.
Interest in BTC halving
Search for BTC halving is spread across the globe. However, a closer look at the data shows that the most interest since mid-March this year has been registered in the Netherlands, Slovenia Austria, Switzerland, and Czechia. Other regions with high interest are Luxembourg, Latvia, Lithuania, and Estonia. In Africa, most interest is in South Africa.
Narrowing the query to “Bitcoin halving 2020,” shows an increased interest in Nigeria, Venezuela, Austria, Portugal, Czechia, and Singapore.
Search interest for bitcoin halving since 2015- courtesy of Google Trends
Despite global uncertainty in the wake of the Coronavirus pandemic, interest in BTC remains high. Among bitcoin price prediction 2020 takes, halving is one of the bullish pointers. The belief is that a reduced supply of bitcoins in circulation will impact its price.
According to historical data by Coin Metrics, bitcoin price has hit a new peak every one and a half years after mining rewards reduce. The last time BTC surged to hit its all-time high price of $20k.
Price history graph courtesy of Coin Metrics
But the halving will also affect Bitcoin miners, some in a big way. A daily estimate of mining rewards puts earnings by miners at about $14 million on current BTC prices. That is likely to drop by half if prices remain around current levels post-halving.
Bitcoin (BTC) price has gained just over 2.9% in the past 24 hours to see it exchange hands above $6,880 (Tuesday, April 14, 2020, 13:20 UTC).
Featured image courtesy of Shutterstock.