The next Bitcoin halving could come sooner than expected, here’s why!
Bitcoin has been at the center of attention with its recent big rally and news of its hashrate reaching a new all-time high of 281.79 million.
With its hashrate- the computational effort required to secure the network reaching new highs, this indicates that a lot more people are jumping on and using the blockchain more than usual.
Because of this, talks have begun in the community that Bitcoin’s halving may take place sooner than it was originally expected.
Bitcoin halving in itself can be described as the event in which miners’ block rewards for mining the Bitcoin token will be cut in half approximately every four years after every 210,000 blocks are mined.
With the last halving having taken place in the year 2020, the fourth Bitcoin halving was originally predicted to take place sometime in early May of 2024. However, with this new hashrate data revealed, it’s possible that the projected Bitcoin halving date could be moved earlier to December of 2023.
With the Bitcoin halving possibly coming sooner than expected, investors can expect Bitcoin prices to rise as BTC’s value usually rises by quite a bit ahead of halving event.
Arguments Against Moved Date
Some in the community including developers, however, are arguing that the halving will not be moved forward like many are claiming, but will continue to take place in 2024 as originally planned. This is due to Bitcoin’s “difficulty adjustment” in which its algorithm prevents wild variations by adjusting the difficulty of mining blocks in order to keep the total block time at 10 minutes.
And then the difficulty adjustment hits your in the face… https://t.co/R0pnHEDS2l
— DETERMINISTIC OPTIMISM 🌞 (@nvk) September 12, 2022
Bitcoin’s Current Price
Bitcoin itself has been seeing quite a good rally, seeing an 11% raise the past week going from trading at a price of around $19,900 on September 8th to now trading at $22,200 at the time of writing.
Part of Bitcoin’s rally could be due to the excitement in the crypto community around the upcoming Ethereum Merge this week, but it seems that rumors of Bitcoin’s halving possibly coming earlier may have also driven the price to rise.