Binance Founder CZ Clears the Air on Bitcoin Halving Misconceptions
Changpeng Zhao, founder and CEO of the world's largest cryptocurrency exchange Binance, has recently addressed a common misconception surrounding Bitcoin halving.
In a tweet: CZ Binance Twitter, CZ stated (quote): "There seems to be some confusion about the impact of the Bitcoin halving. The halving reduces the supply of new bitcoins mined, not the total number already mined. This controlled issuance is what makes Bitcoin scarce and valuable."
Bitcoin halving refers to a pre-programmed event that occurs roughly every four years, where the block reward for miners is cut in half. This mechanism is designed to slowly decrease the total number of bitcoins that will ever be in circulation, ultimately reaching a capped supply of 21 million.
CZ's quote emphasizes that the halving does not affect the total number of bitcoins that already exist. Instead, it limits the rate at which new bitcoins are created. This scarcity is a fundamental factor that contributes to Bitcoin's value proposition as a digital asset.
By debunking this misconception, CZ aims to bring clarity to the cryptocurrency community and potentially address any anxieties surrounding the upcoming Bitcoin halving, expected to occur in 2024.