We have informed you several times about the positive phenomenon of searching for the combination of “Bitcoin halving” in Google search. However, it seems that interest in this topic is closely linked to the Bitcoin prize. 61 days before the May halving we can say that since the end of February, when we noticed its decline, the trend of seeking information about halving began to decline.
In the image, the trend of searching for the word “halving” is highlighted in red, and the combination of “Bitcoin halving” (this second combination is more important) in the US over the last 12 months is highlighted in blue. Although the search for this information had a rising curve for several months, the fall in prices interrupted this trend.
Making predictions of Bitcoin prices in connection with halving only on the basis of these findings would certainly be wrong, but it is good to know that interest in halving is influenced by price movements. This means that if the price of Bitcoin goes even lower, the trend of searching for information about halving may further decrease. And that’s something we wouldn’t want to see before his approaching date.
Halving cuts the reward for mining a new Bitcoin block by half. It happens approximately every four years. The first two halvings in 2012 and 2016 had a particularly positive effect on the Bitcoin price, and it is therefore expected that the closest remuneration in May 2020 will affect the price in a similar way. This time, the reward is reduced from 12.5 BTC to 6.25 BTC.
While most experts regard halving as a positive thing about the Bitcoin price, skeptics point out that in the event of an adverse cryptocurrency market, which is also influenced by external factors (coronavirus, geopolitical situation, weakening economy, war on oil prices…), it may happen that halving will have the opposite effect.
If the price of Bitcoin is not high enough, after dividing the reward for the miners, many of them may have significant difficulties in surviving. The interruption of their mining would also mean a reduction in the overall hashrate and hence the safety of the entire network. Almost since the beginning of 2019, the Hashrate has been steadily rising and setting new records, which means that miners still believe in positive price developments.