On January 1, Bitcoin was trading at $ 7,200, after completing a 87% year-over-year increase in 2019. Since the beginning of 2020, the price of bitcoin has risen by about 39%. Last month, when the Bitcoin exchange rate rose 30%, was Bitcoin’s best January since 2013. This morning, trading at a record four-and-a-half months, the Bitcoin market cap was more than $ 183 billion – about 64% of its total value Of the crypto market, which has close to 5,100 types of digital currencies.
The Bitwise 10 index, which weighs the prices of the ten largest crypto currencies in terms of their market value, has risen 43.7% since the beginning of 2020, following a 48% annual increase in 2019. The Bitwise 100 index, which weighs the prices of the largest 100 currencies in the market, has seen a 45.2% increase since the beginning of the year, following a 43% annual increase in 2019.
In about 3 months, the mining reward will be crossed
Many investors in the crypto market believe that the price of Bitcoin is likely to continue to rise as the Bitcoin block mining reward halving, which is expected to happen in about 93 days, is expected on May 12. On the other hand, there are also market experts who claim that the crossover event is already priced at the current value of the currency. Which one is right? We’ll find out in the coming months.
If terms like Bitcoin mining or Bitcoin block are Chinese to you, here is a brief explanation that may help. Bitcoin is a distributed (encrypted) cryptographic currency (without central control of any body). The technology through which Bitcoin coins are created and transmitted between users around the world is called blockchain, and it allows to manage a distributed database on a peer-to-peer network.
Within the blockchain, all information about Bitcoin coins is divided into files (blocks). The process of adding new blocks to the blockchain, while verifying the data in each block, is called “mining” – in which new Bitcoin coins are created, which are rewarded for miners (computers that perform mining operations). Bitcoin’s currency cap is limited to 21 million coins. The creation of new Bitcoin coins as a mining reward is expected to be completed in 2110-2140 – so that remains for at least another 90 years until then.
Bitcoin is designed so that the reward for block mining decreases by 50% every 210,000 blocks (once every four years). This method of reducing the rate of Bitcoin coins at a regular frequency is called “halving”. Today, every 10 minutes, with every new block, 12.5 new Bitcoin coins are created – and a total of 1,800 new coins daily. After the upcoming crossover, expected on May 12, 2020, the rate of coin production will drop to 6.25 coins per block, totaling 900 Bitcoin coins per day – and that rate will continue until the next crossover event, expected in 2024.
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