Interestingly, and just 36 days before the shaping event, Bitcoin halving-related searches is on the rise at Google.
Google, the world’s popular search engine, is reliably providing hints of what the general population thinks about the world’s most valuable digital asset subsequently highlighting the significance of this event.
Source: Google trends
Bitcoin Halving—the Good and the Bad
Special, Bitcoin halving only happens every four years.
Every time it is executed, the network readjusts its mining difficulty and slashes the miner rewards by half.
The last time it happened in 2016, weak miners were shaken out as rewards dropped 50 percent to 12.5 BTC per every successfully mined block.
The mining pool, or the heavily invested miner with the latest gear, wins $88,750 worth of Bitcoin if each coin is valued at $7,100.
Disadvantageous for the network, over time, Bitcoin’s transaction confirmation will be gradually under the grip of a few, an anti-thesis for the whole decentralization principle that underpins blockchain.
However, whenever there is a slash in reward, the emission shock that results often leads to a re-pricing, an increment in the underlying asset’s value assuming demand remains the same.
This, for investors, is what is drawing attention and perhaps fueling searches as noted. If history leads, Bitcoin stands to gain and would likely soar above Feb 2020 highs towards $14,000 of June 2019.
Fundamentals Have Changed
But this time, fundamentals are different.
Bitcoin adoption has been on the rise. Judging by the number of merchants accepting BTC as a means of payment,