Understanding Bitcoin Halving: A key event for Bitcoin investors

economictimes.indiatimes.com:

Bitcoin halving, often referred to as the «halvening,» is a significant event in the world of cryptocurrency. It is a pre-programmed event that occurs approximately every four years, and its implications are crucial for Bitcoin investors, miners, and enthusiasts alike.

What is Bitcoin Halving?

Bitcoin operates on a decentralized network powered by blockchain technology. Unlike traditional fiat currencies that are controlled by central authorities like governments or banks, Bitcoin's issuance and supply are governed by code.

Bitcoin halving is a built-in feature of the Bitcoin protocol designed to control the supply of new bitcoins entering circulation. Specifically, it refers to the halving of the block reward that miners receive for validating transactions and adding them to the blockchain. When Bitcoin was first created by Satoshi Nakamoto in 2009, the block reward was set at 50 bitcoins per block. However, approximately every four years, or after every 210,000 blocks mined, the block reward is reduced by half.

The most recent Bitcoin halving occurred in May 2020, reducing the block reward from 12.5 bitcoins to 6.25 bitcoins per block. This process will continue approximately every four years until the maximum supply of 21 million bitcoins is reached, which is expected to happen around the year 2140.

Did you Know?

The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.

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