Bitcoin halving can also be called Bitcoin block reward halving, which means that the rewards obtained after producing new blocks are halved approximately every four years. This means that after the production reduction, the corresponding Bitcoin reward for each block mined will only be half of the reward before the halving. After the advent of Bitcoin in 2009, the block reward was 50 Bitcoins. Depending on the speed of block production, the reward is halved approximately every four years, with the final total amount being constant at 21 million. Currently, Bitcoin has undergone two halvings, which occurred in November 2012 and July 2016. The third Bitcoin halving is expected to occur in May 2020. By then, the Bitcoin output will be halved from the current 12.5 to 6.25.
Why are BTC mining rewards halved?
According to the laws of supply and demand in the market, if the circulation quantity of a certain commodity is not restricted, hyperinflation will easily occur and the price of the commodity will be greatly reduced. Likewise, if Bitcoin becomes ubiquitous, its value may become less and less. A block is generated in the Bitcoin network in about 10 minutes, and a certain number of Bitcoins will be mined continuously. Setting the Bitcoin reward to be halved every 210,000 blocks can effectively and gradually reduce the inflation rate of Bitcoin, thereby preventing the occurrence of hyperinflation. The block halving is one of the fundamental differences between Bitcoin and traditional currencies and reflects the uniqueness of Bitcoin.
What impact will the Bitcoin production cut have on the currency price?
The halving has become a clear bullish catalyst and even created a hype cycle.
Will Bitcoin price rise after BTC production is halved?
Judging from the history of Bitcoin halving, there is a high probability that it will rise.