One of the most discussed events in the cryptocurrency world will take place within a few weeks. We are talking about bitcoin halving, an event that happens every 4 years. In addition to halving the mining fee, this event has always been followed by extreme price increases in the past. Can such development be expected now?

Bitcoin mining is one of the concepts that is usually associated with cryptocurrencies. It is mining that is supposed to solve the double-spending problem that previous e-money and cryptocurrencies failed to solve. The problem was clear in advance. How could a financial system that does not have a central authority or a third-party watchdog work without the threat of double-spending?

More than ten years ago, Satoshi Nakamoto came up with the solution when he created the first cryptocurrency, Bitcoin. At the same time, he also introduced the concept of mining and rewards for miners. And it is this reward that is halved every 4 years. In the very beginning, miners received 50 BTC for one block, but after two halvings, this amount dropped to the current 12.5 BTC. However, the miners can enjoy this reward for only 2 weeks more, as the third halving in the history of Bitcoin is planned to take place between 11 and 12 May.

Not only will such a move halve the mining reward (from 12.5 BTC to 6.25 BTC), but it can also help boost the price of bitcoin. One year after the halving, the price of Bitcoin tends to explode and surpass its ATH (all-time high). Many people think that this scenario will happen again. Some forecasts say that Bitcoin is expected to be worth $ 20,000 again in 2021. Some forecasts are even bolder!

On the other hand, it must be said that the situation in the financial world is far from ideal. Therefore, if coronavirus and lockdown measures continue to cause problems, bitcoin may not see a new ATH next year. Bitcoin is still a very risky asset, and investors tend to avoid it in times of financial uncertainty, such as now.