# Bitcoin is minutes away from something that happens as often as we in the US elect a president...

It's block rewards are dropping from 12.5 to 6.25 coins per block.

As I type, the block reward halving will take place in mere minutes...

https://i.postimg.cc/hGZyD3bJ/Capture.png

(Source: https://coinmarketcap.com/halving/bitcoin/)

Once this happens, the rate of new supply entering the market will be cut in half.

And if the demand stays roughly equal or at least doesn't fall by half as well, the price should increase.

# What about the miners?

This event will seriously eat into the profitability of miners in the short term and we are very likely to see some miners forced out.

However, when that happens, the difficulty measure will adjust and some miners will be able to jump back in.

Also of note is the fact that there is now a robust futures/options markets where miners can hedge their business while continuing to operate in the red for a period of time.

It will be interesting to see what happens to the total hashrate post halving.

https://i.postimg.cc/4NTgRmxD/Capture.png

(Source: https://www.blockchain.com/charts/hash-rate)

As you can see, we are basically at all time highs as of right now.

I would not be surprised to see that number pullback for the first several weeks post halving.

# How will the price react?

That is what everyone would like to know...

During the last halving we were flat for several weeks post halving before seeing a sinificant dip.

The dip occured roughly 3 weeks post halving and took prices down about 20-25%.

Given how bitcoin is trading right along with global equities as of late, and they continue to drift higher in the near term, it may follow suit.

Though, if they roll over in a couple weeks/months due to a second wave of coronavirus, bitcoin likely would see a dip in the range of the one we saw post last halving event.

Stay informed my friends.

-Doc