Get to know the Bitcoin Halving event and how it works

Lutfi

Get to know the Bitcoin Halving event and how it works
Get to know the Bitcoin Halving event and how it works

Rancakmedia.com – An event known as “Bitcoin Halving” occurs when the block reward is cut in half. There is a half-half reward in blocks every 210.000 blocks.

This halving event will only occur when half of the currency supply is already in circulation. The halving will repeat when half of the remaining supply of coins is in circulation, and continue like that every 4 years according to the algorithm.

The term “halving,” which refers to the periodic halving of the number of Bitcoins in circulation, is well known among Bitcoin enthusiasts and miners.

With supply halving, the number of Bitcoins available will decrease over time, which could increase the price if interest grows.

How Bitcoin Halving Works

Block reward halving Bitcoin the first occurred on November 28, 2012 when it dropped from 50 BTC to 25 BTC. On July 9, 2016, the value was halved again, from 25 BTC to 12,5 BTC.

The next one will take place in May 2020, according to current projections. This would result in half of the current Bitcoin payout, which is 12,5 bitcoins.

Bitcoin Halving Price Effect Timeline

The first halving occurred on November 28, 2012, when the price of BTC grew from its previous price of just $11 per BTC to $1.100 per BTC, in chronological order.

Then the second halving occurred in July 2016 with the price of BTC rising from $576 to $650 amid increasing interest in this commodity.

A year later on July 9, 2017, BTC exploded to $2.500, with this figure BTC had risen by 434 percent. The block reward is predicted to be 0 in 2140.

The second halving will take place in 2020, and miners will only earn 6,25 BTC for each mining success after that. A year later, Bitcoin's price had risen to $68.000, an all-time high. By 2140, the block reward is expected to be zero.

Uses and Consequences of Bitcoin halving

When it comes to the king of crypto assets, halving their value may be an effective way to maintain control. Satoshi Nakamoto only released 21 million coins from the beginning of time; this is neither more nor less. The goal interval for each block is 10 minutes.

Bitcoin halving is a historic event for Bitcoin users, at that time the price of BTC will usually rise either after or before the halving. Nowadays, bitcoin is becoming more popular and in demand all over the world.

Many miners will stop working as a result of this event, as their payouts are reduced. Providing reduced payouts will cause more miners to lose money and transfer to other cryptocurrencies.

This will immediately impact the Hash rate on the Bitcoin network, which in turn affects user transaction speeds.

Genesis Mining co-founder Marco Streng spent $200 to get one BTC in the first Halving. After the second halving occurred, the price jumped around $400.

However, big miners will not stop operating just because their income decreases; the costs they incur have not produced any profits.

Additionally, as a result of the next halving, the number of small, inefficient miners will shrink.

Conclusion

The term “halving” refers to the periodic halving of the number of Bitcoins in circulation. There is a half-half reward in blocks every 210.000 blocks. The first halving occurred on November 28, 2012. The next one will occur in May 2020, according to current projections. The block reward is predicted to be 0 in 2140.

Satoshi Nakamoto has only released 21 million coins since the beginning of time. The second halving will take place in 2020, and miners will earn only 6,25 BTC for each mining success. This will immediately impact the Hash rate on the Bitcoin network, which in turn affects transaction speed.

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Lutfi

Hi, let me introduce myself, Lutfi Hulasoh, I am a writer and techno blogger. I started creating a personal blog writing informative articles about the latest trends and developments in technology. My writing covers a wide range of topics, from mobile applications to artificial intelligence, and I can also provide easy-to-understand explanations to help readers understand complex concepts.