Bitcoin Surged 10x After 2016 Halving; Will 2020 See a Similar Result?

Joseph Young
In about every four years, Bitcoin experiences a block reward halving, a mechanism that reduces the rate in which new bitcoin is mined by miners. | Source: Shutterstock

By CCN: In about every four years, the Bitcoin blockchain network experiences a block reward halving, a mechanism that reduces the rate in which new bitcoin is generated or mined by miners.

The block reward halving has typically served as a key fundamental factor behind the dominant cryptocurrency’s major rallies.


From July 2016 to 2017, within a year following bitcoin’s block reward halving, the bitcoin price spiked by nearly 10-fold from $268 to $2,525. In previous years, the asset similarly saw large gains subsequent to the halving.

Will bitcoin continue to surge throughout 2020?

The past performance of an asset does not serve as a guarantee for the future performance of the asset. As such, merely because bitcoin saw substantial gains in previous years triggered by a particular factor, it does not definitively guarantee that the asset would increase by a similar rate in the future.

However, the block reward halving of the Bitcoin blockchain network poses a significant impact on the rate in which bitcoin is generated and supplied to the market.

If the demand for the asset remains the same or increases over the medium- to long-term but the supply of the asset decreases, it may reasonably cause the value of the asset to spike.

Read the full story on CCN.com.