What is Bitcoin halving?
If you know, Bitcoin income or mining is limited to only 21 million. If the number of assets splits that number, automatically no more Bitcoin will be generated.
While in the Bitcoin protocol itself, every 210,000 blocks which take effect every four years will encourage the 'halving' of Bitcoin or 'halvening'.
If the halving applies, earning new rollers will be more complicated and block rewards will be deducted by half or 50% of the current rewards.
The first halving took effect on 28 November 2012. Then, the second time on 9 July 2016 and the third time on 11 May 2020. This process will continue so that the rewards per block will break 0.
The last halving is expected to take effect at 2140 when 21 million BTC is completed in full. At that time, the Racer also won't receive any block reward.
What do block rewards mean? Block rewards are easier to understand as miners for each new block added to the blockchain using mining hardware.
Okay, it's clear so far? Let's understand the halving concept and continue the examples that apply to the first and second halving.
When Bitcoin was first generated in 2009, the racers received 50 BTC per block. This means that 10,500,000 BTC are generated before November halving after which each racer receives 25 BTC per block.
Currently, the Bitcoin price has increased to $ 127 rather than $ 12.35, five months after the halving.
In the second halving, 420,000 blocks are generated and the racer is rewarded with 12.5 BTC per block. Currently, the Bitcoin price is soaring at $ 758.81 instead of $ 650.63.
So, don't pay attention to a handful of Bitcoin investors who are eagerly awaiting the halving.
Overall, it can be concluded that the Bitcoin halving is a basic requirement to preserve its status as a valuable limited asset. Indirectly, he explained why the shilling supplies were only available for 21 million only.
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