What is Bitcoin halving and why it matters?
Simply, you can think of it just like a Job that you do.
What you do is "mining."
What you get is "reward" as a "Proof of Work"
Where you work is "Blockchain."
đImagine an event where the rate of your reward is cut by half.
Rewards are calculated based on blocks completion. After each block, miners get an amount of BTC as rewards. Currently, it is 6.25 BTC per block.
đDo you know that
â˘BTC was first found and mined in 2009 by Satoshi Nakamato.
â˘After the first block was mined, he got a reward of 50BTC.
â Why it is very low?
Because of #BitcoinHalving.
â˘Halving event cuts the reward for mining new blocks in half.
â˘This reduction happens automatically after every 210k blocks are created.
â˘The blockchain takes about 4 years to open more 210k blocks.
đHalving dates?
â˘Nov. 28, 2012, to 25 BTC.
â˘July 9, 2016, to 12.5 BTC.
â˘May 11, 2020, to 6.25 BTC.
â˘Next halving is anticipated in Apr 2024,
cutting it 3.125 BTC.
â˘This continues until 2140, when all BTC are mined. â˘By the final halving, BTC reaches the maximum
supply of 21M.
â˘Today, BTC are in circulation is about 19.65M.
đľWhy #Halving matters?
Halving effects demand, inflation, investing, mining,trading, etc.
đIt addresses inflation concerns to counter the decrease in purchasing power of BTC over time and thus maintaining scarcity.
đBy reducing the rate of new BTC introduced, demand for new BTC increases.
đHistorically, BTCâs price rise with halving event.
đFor investors, BTC is recognized as a potential gain, not only as a payment coin.
đFor Miners, (individuals, groups, or businesses) the focus is on profit, but halving makes it less profitable with smaller miners being unlucky even if BTC price rises.
đAs for us, traders Halving comes with a bull market, thus a good chance for profitable trading.
To sum up, understanding BTC halving is essential for anyone involved in the cryptocurrency space, as it influences investment strategies, mining profitability, and overall market sentiment.
