Bitcoin halving and impacts on cryptocurrency players
Bitcoin halving occurs every four years when miners' mining rewards decrease, causing the price of the world's largest cryptocurrency to fluctuate wildly.
While the price of Bitcoin continuously peaked, the community's attention focused on the halving event taking place in April. The Bitcoin halving is awaited because of its direct impact on the entire industry, from miners and cryptocurrency owners. to specialized excavator trading companies and the energy industry.
What is Bitcoin halving?
Initially, the term Bitcoin halving was mainly reserved for miners - those who directly create Bitcoins by validating transactions through solving complex mathematical problems to open new blocks. After each initial block, miners receive a certain amount of Bitcoin (BTC), called a reward.
To limit inflation when too many miners join together, Nakamoto Satoshi - the father of Bitcoin - added a code so that after every 210,000 mining blocks, the reward will be halved. This algorithm is called Bitcoin halving.
On average, halving will take place every four years. This makes it increasingly difficult to mine Bitcoin, thereby creating scarcity and eliminating ineffective miners from the network.
