The Price of Bitcoin in 2020

Bitcoin is a digital phenomenon that has taken the world by storm. Although it has had ups and downs, in terms of its price, 2020 has been a very successful year for Bitcoin. In fact, it's safe to say that it has gained a new burst of popularity among investors. In this article, we provide an overview of the price of bitcoin in 2020 and the main factors that have influenced this upward trend.

Bitcoin Halving

Bitcoin halving is an important event for the entire Bitcoin community, as it is for the miners. Bitcoin mining is the process where new BTC enters into circulation. Furthermore, miners are responsible for approving new blocks of transactions in the blockchain network by solving complex computational problems. 

This is a very simplified version of the actual work miners do, while they are expected to use high-end computers with good hardware in order to mine. Also, mining gets increasingly more difficult as more people become miners. That being said, a lot of people are joining mining pools because it's more profitable to mine as a group and to share resources.  

 Of course, they are rewarded for their work, and they receive a block reward for validating the transaction in the blockchain network. However, the halving is an event that cuts in half the block reward every four years, or after 210,000 blocks. At first, mining was quite easy to do, and the reward was 50 BTC. After the first halving in 2012, it was down to 25 BTC, and then in 2016, it decreased to 12.5 BTC; finally, in 2020, it reached 6.25 BTC.

The Price of Bitcoin After the Halving

So, as we mentioned earlier, it's increasingly more difficult to mine BTC, while the rewards keep getting smaller. This affects the overall...