📣⚒️🛠What is the Bitcoin halving?🛠⚒️📣
Everyone Have To Read And
Understand it 👇🏻👇🏻👇🏻
Every four years, on the halving day, the amount of new Bitcoins created gets cut in half. This means that when Bitcoin halves, the reward given to the contributors securing the network is reduced by 50%, directly impacting the rate at which new Bitcoins are introduced into circulation.
At the beginning of 2020, 12.5 new Bitcoins were added to the network every 10 minutes via virtual "mining." In May, that amount was halved to 6.25. In April 2024, it will drop again to around 3.125 — and the process will continue until all 21 million coins have been mined (which estimates say should happen around the year 2140). This process, coded into the Bitcoin protocol by Satoshi Nakamoto, the creator of Bitcoin, is a way to limit the total supply of Bitcoin, increasing its scarcity.
👉🏻Why is the Bitcoin halving important?
When Bitcoin halves, the reward given to the contributors securing the network is reduced by 50%, directly impacting the rate at which new Bitcoins are introduced into circulation. And because there are only 21 million bitcoins and the halving makes fewer of them, the halving contributes to making bitcoins more scarce.
This inherent scarcity, combined with the historic increase in demand after the previous halving events, fosters a sense of digital rarity that could lead to potential upward pressure on prices.
