$BTC
WHAT IS BITCOIN HALVING?$BTC
Bitcoin halving - this is whereby after every four years the block reward for Bitcoin miners is cut in half. This will proceed until all 21 million bitcoins are issued over the years. It is also a process that regulates the rewards allocated to miners.
Bitcoin is not owned by one single entity. It requires miners worldwide to validate transactions and secure the network. In return, miners are rewarded with Bitcoin for every block.
When Bitcoin was launched the reward for each block was 50BTC. The code is specifically set for the rewards to be cut in half, after every 210,000 blocks are added to the blockchain. It takes around 10 mins to mine one block.
The first bitcoin halving was in 2012, whereby the halving was reduced to 25BTC. The second one was in 2016, whereby the halving, was reduced to 12.5 BTC. The third halving was in 2022 whereby the halving was reduced to 6.25 BTC. The next one will be in 2024.
Due to the supply-demand principle, the halving results in Bitcoin price increasing or being constant depending on demand. This is because the halving reduces the amount of Bitcoin entering the market. #BullRun🐂
With the fact that there can only be 21 million Bitcoin, it has been such a scarce asset over the years. After the halving, bull runs occur. After the 2024 bitcoin halving, we might have 19.7 million bitcoin in supply.
