Bitcoin will undergo supply cut today May 11, 2020, during the time governments around the world are printing more money and increasing debts in order to combat the economic effect of the COVID-19 pandemic. Nigeria’s total debt profile now stands at N33trillion and is expected to reach an unprecedented level.
What’s Bitcoin halving?
It means that the amount of new bitcoin being generated and entering circulation every 10 minutes will drop by half from 12.5 to 6.25. Bitcoin halving is programmed to happen every time the network processes approximately 210,000 megabytes of transaction data, which takes about 4 years. Once all 21 million Bitcoins are generated, which is estimated to be in the year 2140, the network will stop producing more coins.
Historically, halvings have had significant long-term effects on the market.
- First bitcoin halving: During 2012, the price of bitcoin increased from $11 to $1,000.
- Second bitcoin halving: From 2016–17, the price ballooned from $700 to $20,000.
- Third bitcoin halving: Scheduled on May 11, 2020 (the price impact is still yet to be seen).
Bitcoin was born from the Financial Crisis of 2008 and remains the best performing major asset of 2020 and the past decade.