Bitcoin Halving 2020: History & Price Prediction (A Simple Explanation)

Bitcoin Halving 2020: History & Price Prediction (A Simple Explanation)


Hello! I’m Crypto Casey. In this video we
will be talking about the Bitcoin halving or “halvening” event that will take place
in May of 2020. We will go over what halving is, why having takes place, and
what implications halving has for the future of Bitcoin. There are three key
concepts about the Bitcoin network you need to know that will make Bitcoin
halving easier to understand. The concepts we will go over are the Bitcoin
blockchain, Bitcoin mining, and the Bitcoin supply. Let’s get started. Concept
number one: the Bitcoin blockchain. First, let’s briefly talk about the Bitcoin
blockchain. The Bitcoin blockchain is basically a live running record of all
Bitcoin transactions. As I’ve explained in previous videos, the simplest way to
understand what blockchain means is by separating the word “block” from the word
“chain.” So imagine records of individual transactions like payments sent to or
from one person to another getting listed or indexed one after the other.
Once a certain amount of transactions in the list has been reached, a block is
formed. This is because each block has a maximum amount of transaction data it
can store. Once the maximum amount of transaction data for the block has been
met, the block is added behind the previous block of transactions. Now
imagine these blocks of transactions linked together with a chain. So block
chain is simply groups of transaction data that are linked together. The basic
structure of the Bitcoin blockchain consists of a network of computers
around the world with Bitcoin software installed on them. When Bitcoin
transactions occur, the data is communicated to this network of
computers that validate the transaction, add the transaction to their copy of the
Bitcoin ledger, and then broadcast the ledger changes to the other computers on
the network. There’s a maximum amount of data that can be saved per block so
approximately every 10 minutes a new block of Bitcoin transactions is created
verified and published to the Bitcoin blockchain if you want a more in-depth
explanation about what blockchain is and why it was developed check out my video
guide by clicking on the link above awesome concept to Bitcoin mining next
let’s talk about how all of these Bitcoin transactions are getting
verified on the Bitcoin network the verification and posting of transactions
on the blockchain is completed by miners via a process called mining miners are
people are pools of people that use computer processing power to maintain
the Bitcoin blockchain this includes keeping the ledger of Bitcoin
transactions clean consistent and permanent by grouping new transactions
into blocks and broadcasting them to the rest of the Bitcoin network for
verification each new block of transactions has a cryptographic hash of
the block published before it which is what links all of the blocks of
transactions together to form the blockchain so for a new block to be
accepted by the network miners are required to follow a proof-of-work
system which involves creating a new cryptographic hash of the newly
completed block so new blocks of transactions have a unique hash from the
previous block and to get published to the ledger
it requires the creation of another unique hash which will go through a
validation process and then get passed on to the next block and so on and so
forth to create a new unique hash for the block of transactions miners compete
with each other using computer power to try to be the first one to come up with
a 64 digit hexadecimal number or the hash that is less than or equal to the
current difficulty target of the network which warrants its own separate video
explanation so without losing sight of the focus of this Bitcoin having video
check out my other video using the link above if you’d like to learn more about
the technical intricacies of the Bitcoin mining process the basic concept you
need to know about Bitcoin mining to better understand the Bitcoin having
event is that miners are rewarded with Bitcoin each time they verify a new
block of transactions mining rewards are a combination of newly minted Bitcoin
units that were not previously circulating and transaction fees of
Bitcoin that were already circulating these rewards are in place to
incentivize miners to participate in the mining process to ensure the Bitcoin
network continues to be audited and essentially maintained
cool let’s move on concept number three the Bitcoin supply Bitcoin is a digital
currency developed by an unknown person or group of people that go by the
pseudonym Satoshi Nakamoto the more you learn about and start to understand
Bitcoin the more similarities you will see between Bitcoin and gold this is
because Satoshi developed the digital currency Bitcoin to intentionally Harbor
characteristics of the precious metal gold we recognized this in the mining
process we previously discussed prospecting for new gold deposits
building out a mine and operating in mine
to extract gold is laborious similar to the immense computing power required by
Bitcoin miners to perform guesswork to create the new unique hashes to validate
new blocks of transactions another gold light characteristics Satoshi programmed
into bitcoins is a maximum supply the total number of bitcoins I can ever
exist is 21 million units this 21 million unit maximum was established to
mirror Gold’s stable inflation rate you’ve probably read and watched the
content explaining how Bitcoin is inflationary while other content
explains how Bitcoin is deflationary it’s important to understand that there
are two different definitions of inflation the most modern and common use
of the word inflation refers to a decrease in the purchasing power of
money the older traditional use of the word inflation refers to an increase in
the supply of money that is not backed by gold in the modern context of
inflation bitcoin is deflationary because over
time its purchasing power will increase instead of decrease due to its fixed
supply one way to understand this concept is to consider in the future
when new gold prospects become extremely rare in mining costs of new prospects
increase until it becomes too expensive to mine new gold as a result the fixed
supply of pre mined gold will increase in value over time since gold cannot be
created make sense right in the traditional context of inflation bitcoin
is inflationary because the supply of Bitcoin which is not backed by gold is
increasing as miners mint new Bitcoin through validating new blocks of
transactions currently around 18 million bitcoins are in circulation of the 21
million total supply according to its current track the last Bitcoin will be
mined in the year 2140 which is 100 and 20 years from now so in our lifetime the
supply of Bitcoin will continue to increase great now that you’ve learned a
little bit about the Bitcoin network Bitcoin mining and a fixed supply of
Bitcoin let’s talk about what having is why having takes place and what
implications having has for the future of Bitcoin number one what is having
having in terms of Bitcoin refers to the reduction in the Bitcoin block rewards
issued to miners by half currently the block reward for miners is
12.5 units of a newly minted Bitcoin that were not previously in circulation
when the halving occurs in May of 2020 the block reward will have or reduce by
half which will give miners 6.25 units of a newly minted Bitcoin per validated
block having was programmed to occur every 210,000 block and since a new
block of transactions is completed roughly every 10 minutes this works out
to an average having event every four years when Bitcoin was first developed
in 2009 the block reward was 50 bitcoins in 2012 the first having reduced the
block reward to 25 bitcoins and in 2016 the second having event reduced the
block reward to what it is at the time of this video which is 12.5 bitcoins
number – why does having occur Satoshi Nakamoto programmed the halving of newly
minted Bitcoin every two hundred ten thousand blocks to prevent inflation
from decreasing the purchasing power of Bitcoin Satoshi also factored in the
increase of technological advancement over time into bitcoins algorithm so the
faster new blocks are validated the more difficult creating new unique hashes for
new blocks will become at the current block reward rate of 12.5 Bitcoin per
block which occurs roughly every 10 minutes about 1,800 new bitcoins are
minted daily making the inflation rate in the traditional sense about 3.8
percent in after the halving of the block reward rate to 6.25 Bitcoin in May
about 900 new bitcoins will be minted daily
decreasing the annual inflation rate to 1.8% which will make Bitcoin less
inflationary than the US economy having the amount of newly minted Bitcoin in
segments controls the rate at which the finite or fixed supplies bitcoin is
titrated into circulation over time similar to gold this creates a
predictable and constantly decreasing inflation rate that will eventually
reach zero number three what implications having has for a Bitcoin
gold is considered one of the best stores of value because of its fixed
supply and since the supply is not extremely abundant gold is scarce this
scarcity is imposed by nature since we’re not able to create gold to
increase the supply similarly the algorithm that imposes bitcoins fixed
supply was designed to make Bitcoin even scarcer than gold so if demand remains
steady or increases for the fixed scarce supply of Bitcoin the price of Bitcoin
will experience positive long-term effects and after the halving in May the
supply of bitcoins will become even more scarce so let’s look at what happened
after previous Bitcoin having’s Bitcoin was around eleven dollars when the first
having occurred in November 2012 then in 2013 an entire year later Bitcoin spiked
to $1100 the highest Bitcoin had ever been at that time before dropping back
down to around $220 in remaining under $1,000 for the next few years in July of
2016 during the second having Bitcoin was around $600 and then spiked to
20,000 near the end of 2017 which was around 18 months later so historically
the 12 to 18 months immediately following a halving event Bitcoin
pricing didn’t show much movement also it’s not quite clear that the spikes in
price is 12 to 18 months after the having events actually correlate
exclusively with the halving the first Bitcoin price spike to 1100 happened an
entire year after the having him in and it seemed to correlate with the Cyprus
bailout the second Bitcoin price spike to $20,000 happened an entire 18 months
or year and a half after the halving took place
and it seemed to be caused by market manipulation as cryptocurrency was being
featured in mainstream media and attracting attention from the masses did
the having have an effect on the spike to $20,000 in late 2017 maybe not the
spike but it’s more probable that it’s been playing a role in maintaining
bitcoins price over 3,000 dollars since then so what does the historical data
tell us about the upcoming having event into May of 2020 as Bitcoin has become
more popular since the last having in 2016 the upcoming having in May is
likely already priced in and has been for a while there’s a lot of hype coming
out about the impending having so it’s likely that the price of Bitcoin drops
significantly following the having event due to so many inexperienced people and
investors operating off of the assumption that bitcoins price will
increase immediately after or shortly after at the halving as with previous
having events I wouldn’t expect to see any drastic
lasting changes do you exclusively to the halving event without a correlating
positive or negative outside force like government regulation market
manipulation an economic event or similar even then as with previous
having’s averaging 12 to 18 months before noticeable changes the bottom
line is this there is a lot of room for opposing theories opinions and
predictions about the future of Bitcoin pricing with regard to the halving in
May of 2020 and the years following so it’s important to do your own research
and draw your own conclusions about the impending Bitcoin having thanks for
taking the time to watch my video if you found the information helpful give this
video like and subscribe to my channel for more crypto related content so what
do you guys think the future holds for bitcoins pricing after the halving will
it fall will it rise in the comments below share your post having 6 months 12
months and 18 month Bitcoin price predictions be safe out there

100 thoughts on “Bitcoin Halving 2020: History & Price Prediction (A Simple Explanation)”

  1. Unlike the government issued FIAT which are driven by peoples desire for power and control, the BITCOIN is driven by pure greed. The people's desire to acquire it and hold it is only driven by their pure greed and desire for easy money. CRYPTO, the way it is functioning right now will not bring any good to humanity, even the opposite, it will be absorbed by governments and will give them the super power to know every last bit of information about us. Don't believe me? Sign into some exchange and start trading bitcoin – you will see who owns it and how it is manipulated – worse than FIAT. At least governments are involved in building roads and infrastructures – the people manipulating BITCOIN are not building s..t – they acquire it, hold it and sell it for one purpose only – TO GET MORE FIAT without contributing anything to society. Now, I don't say crypto is bad – it is a very good concept, but needs a lot of improvement by non-profit organizations (the way linux community functions). In 2 words – currently BITCOIN = avarice and greed.
    Please excuse my English – it is a second language

  2. Cool, there are many scams in the crypto industry during the tokenization process but there are many projects based on DeFi tech supported by wanchain ecosystem like finnexus, they give back your money of token in USD after 3 month for exchange of token isn't it risk free investment.

  3. Anyone feeling generous ? I am a good person don’t smoke don’t drink please let me know any donation would be appreciated…

  4. Great video. One factor that seems to be overlooked is the gradual loss/burn of BTC due to human factors (holders unable to access crypto due to death, human error, etc). Even if this coin burn occurs at a rate of 0.25%/year this will greatly reduce the 21M total coins over time.

  5. very clear presentations of the topic of how the bitcoin halving all about since its first started of $50 every 10 minutes that cut half every 4 years wherein the next scheduled halving will be this coming May 20220.

  6. Many people think that the halving event is already priced in. My personal opinion is that it can not be priced in because the halving did not happened yet. If the supply now is still 12.5 BTC how can that be priced in if the supply is still 12.5? If it will drop to 6.25 then it should have an impact on the price, just following basic principle rules of economy: if supply drops and demand stays the same, price should go higher. We will see in may 2020 what happens…

  7. I was wondering if it is possible, would you let me upload it in to my Youtube channel Ma'am CryptoCasey? Please…. 😉

  8. Expect legislators stepping in with trade limiting restrictions, as soon as price levels go beyond 50K mark.

    Max to own more than 10 at any time and trades limited to max 2 between recurring parties, unless excempted, such as fin institutions and mutinational publicly traded companies with market cap exceeding 2 bn, with max of 500 resp 35.

    So it is in the self interests of bitcoin advocates to let BTC never exceed 25K within the next ten yrs.
    Then it will remain off the charts as a potential severe threat to global monetary institutions (still considered as We The Ppl). So as long as it can be regarded as not much more than a gimmick, BTC will do fine.

    Q: with the end in sight, mining to costly, expect transaction costs that will sky rocket, as computing power will be re-allocated.

    So expect within 50 yrs, the whole of BTC to become substituted by a BTC 2.0 with newly set ranges, to increase its sustainability, maintenance computing power-wise. It should not exceed more power capacity than between a large town and small city, unless it is properly charged for its carbon footprints.

  9. Hi Casey,
    Thanks for your great info on Bitcoin details…
    Hope to see the trend goes higher..
    Seek to more updates,thanks.

  10. I don't buy this system , it's not tangible enough and has too many probables that can go wrong. Should a government decided to flick a switch that turns off the Internet for any reason , like a war , that's the end of Bitcoin or any other similar system. I stick with gold and silver . Cash in what I need for purchases . Even buy Bitcoin to the amount needed to conduct a payment for either goods or services .

  11. Hi, do you advise to invest in physical bitcoin through sites like Coinbase, or do you recommend holding CFD contracts instead of the physical asset? I'd like to start investing, but not sure which route to take.

  12. Fantastic commentary and educational content. Well organized and well articulated. I love that you take a sober and measured approach to Bitcoin, Crypto, and especially the halving event. I look forward to watching all your other content.

  13. I smell scam! If this mode isn’t acceptable by governments as medium of exchange, how can it be thrived behind the curtain. It’s just virtual currency and doesn’t have any tangible product behind it.

  14. I have a feeling there are many traders out there. But just few make real profits and those you never hear of. They will not come online and brag about it. But that is just my guess. I am beginner only learning and your tutorials are awesome!

  15. You are so intelligent So First you tell what you think about Bitcoin Price Prediction in this upcoming halving 2020 . What you think ? Will the Price will increase or decrease and what's your Guessed Value ? Please Reply Your Prediction 🙏

  16. Because I'm investing for my soon to be born Grand Daughter and My 22 year old fiance and the babies she wants to have with me, and because I'm fully capable of providing a nice lifestyle for the next 10-15 years for all of the fore mentioned, my Monthly Dollar Cost Averaging strategy is more of a 20 year timeline and from my past 68 years of life I've witnessed the degradation of the USD so my choice is simple save in USD sand watch it take a annual hit until it's worthless for my dependents or DCA in BTC and look forward to 2 decades of growth-sometimes major and sometimes very minor. Kind of an easy answer eh?

  17. You mention that it was hype in publicity that more inexperience people involve in bitcoin that push the price to $20k. Therefore if 1% of world population  part with thier money in just the right amount to loose all like betting on lucky draw.
    We can take the average from $100 to $10000 by The fomula would be 1% of 7.6b population is 76m x $10000=$760b divide by 2=$360b market cap divide by 21m bitcoin =$18095
    Therefore if it drop back to $3000 would not trigger a collapse but rebound instead until it eventually reached 10% of world population which would mean $180950 and drop back to $9000.
    Would Bitcoin would come to Bad ending as predicted by warren buffet?
    It cant be that bad if we loose $100 to $10000 depending on our risk appetite.
    Now the opening of account to buy bitcoin is still quite challenging with more and more security authentication to prevent fraud but with the 5G network speeding up mobile network more and more people will find it easy and faster to manourve the process.

  18. With today's hardware when Bitcoin reward drops to 6.25 BTC it will cost $12,000 to produce 1 BTC (at a price of $0.10/ kWh). The difficulty is only going to rise and the number of miners will continue to grow. BTC = $20,000 within 3 months of halvening.

  19. ? Awesome content, You’ve got yourself a new subscriber. Did you ever check smzeus[.]com?? It would help you get the views you deserve!

  20. Surely if rewards to miners are going to decrease then they'd want the value of the reward to be worth more……? The only way for the reward to be valued more is to increase the price of Bitcoin. I dont think this in itself will increase the price of Bitcoin but external forces one way or another would move to produce a spike aka previous halvings and the price increase 6-18 months later. It may even be a self fulfilling prophecy…..bitcoin investors are waiting on the sidelines.

  21. Im quite new to all this but Im open to learning as much as I can any suggestions on learning what you know? I've just recently delved into all this and see the bigger picture without knowing all the details….

  22. Describe how a 51% attack occurs on the blockchain in a new video. I get what you say about miners racing to be the 1st to generate a new hash validating the current block, and hear that in the 51% attack large miners can create a parallel path in POW to be the 1st to generate a falsely validated block before the actual valid block is accepted but then… well that's why we need a video on this.

  23. I can’t thank you enough for – 1)having a clean, calm video format with great acoustics 2)not mumbling 3)not screaming 4)not interjecting, “uh, uh, uhm, uh” 800 times per minute, and finally 5)creating a video that was the length needed, without 15 minutes of special effects and other nonsense added in for absolutely no reason.

  24. It would be great to see a review on Bitcoin Confidential – one of the most private coins, which has unique functions, like cold staking and others.

  25. This is information.

    The others are hype-generators.

    You got me into crypto with your first videos Casey, all your how to's and all. I'm very appreciative.

    Goodluck this cycle.

  26. I watched your first video and thought you disappeared, just came to check the channel again and Wow ! You are back! Great video and keep it coming

  27. I had several blockchain wallets created some years ago and even bought some btc on those
    just yesterday i checked them only to find out that i couldn't acces them anymore due to lack of the word phrases,
    new mobile phone and number of lacking/forgotten passwords to them rip,

    JUST END ME GUYS… ^^'
    (btw nice explanation and video gurl, imma subscribe ofc)

  28. Btc production costs in china 3150$
    After halving 6300$.
    This fact was ignored in the video, but it is the most important.
    There are more facts that will lead to demand.
    20k$ Dec 2020
    100k$ Dec 2021

  29. Hard to say. Last halving produced almost a 29X increase which quickly corrected. I'm skeptical of a 29X repeat but wouldn't be surprised if 10X occurred with a quick correction back down to the low 20K's

  30. 6 months Post Halving: 18k, 12 months: 21k, 18 months: 150k. Slow and steady wins the race. Stack sats and chill and don't check the price every 5 minutes.

  31. No doubt, 2020 has been so bullish for the entire cryptocurrency asset and there is always a room for market correction and the leading crypto asset BITCOIN is not left out of this short term correction which is also a very good buy zone. However, it is very clear that the market has both positive and negative benefits to different people, some would want the price to drop bellow this level more so as to buy cheap and while some would want the price to skyrock so as to make more money by selling the little they Hodl now. As a trader, i see that as gambling if you don't have the right strategy / signals to grow the little you Hodl now and stop worrying about bitcoin fluctuations in price, after some research lately i got to know about Connor James strategy / daily signals which is so accurate and well predictable to execute trades. Last month i was able to achieve a total of 6.8btc trading with my initial 0.9btc using Connor's daily signals. I would also advice anyone who is willing to achieve and grow a very strong portfolio to take advantage of this present market price to buy and trade with Connor's daily signals, He can be reach on Whatspp: +13658026461 and Telgram @ Top_signals247 for inquiries into profitable trading systems.

  32. yes after the halving this may 2020 bitcoin will drop to almost 1k usd because miners will give up and many miners will sell their mining rig… only those who are in cold weather countries remains in 2020 may halving… but then after a year bitcoin will rise to 20k usd since it happened in year 2017 and bitcoin is scarce… but the real truth behind everything is that bitcoin rose to 20k usd because of the scams like global statum, tessline, world way capital, workmines, and other scams that now is forever gone…

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