Sometimes, after the 11th May, one of the most hotly anticipated events in the crypto space is set to occur – “the halving." Happening twice before at four-year intervals the number of bitcoins (BTC) entering circulation every 10 minutes will drop by half from 12.5 to 6.25.
The reason that this is big news is that because the amount of BTC entering the system will reduce, the demand should, in theory, remain the same, possibly driving up the price fuelling numerous predictions on how the market will respond as a result. The number of BTC entering circulation are technically referred to as block rewards, and these are produced by “miners” who earn or “mine” them using electronic equipment.
Every 210,000 blocks (approx. every four years) the total number of BTC that miners can potentially win for solving the mathematical equation relating to the blockchain transaction is halved. The process of halving will end around the year 2140 with a total of 21 million coins in existence.
Because the future supply schedule of BTC in circulation is already known, (unlike national currencies where money can be added and removed from circulation to help stimulate their economy), Bitcoin’s predetermined number makes them scarce. And ultimately, it’s this scarcity along with their utility that impacts and influences BTC’s market value.
Many people believe that this halving will result in price increases, but despite vigorous speculation, there can be no absolute guarantee of this occurring. And, it may be the case that due to the predictability of BTC's circulating supply, traders will have already purchased BTC in advance pushing the price up before halving. Whatever the case may be over the coming week, you need to look no further than DRGx to keep track of the market pairs which are visible on DRGx right now. And, when you are ready, log in and get hold of more Dragon Coin to ensure you are ready for what 2020 will bring for Dragon.