WHAT YOU NEED TO KNOW ABOUT BITCOIN HALVING!
BITCOIN HALVING (HALVENING)
1. Bitcoin Halving plays a pivotal role in controlling the rate at which new Bitcoins are introduced into circulation, slowing down the production of new coins over time.
2. Bitcoin Halving occurs roughly every four years, it is a pre-coded event that happens in the Bitcoin protocol every 210,000 blocks.
3. The first miners of Bitcoin in 2009 received 50BTC as a reward for each block they successfully added to the Blockchain, the first Halving event took place in 2012, which reduced the block reward to 25BTC. The second Halving was in 2016 and it reduced the block reward to 12.5BTC, then the third Halving was 2020 which further decreased the reward to 6.25BTC
4. The next Bitcoin halving will reduce the block reward to 3.125BTC and is expected to occur in April 2024 (when the block height reaches 840,000).
5. This event ( Halving ) reduces miners rewards, impacting supply and demand dynamics, Halving actually controls the issuance of new Bitcoins and maintain its scarcity, thus ensuring a limited BTC supply.
6. After Bitcoin halving your Bitcoin holding remains unchanged. The price of Bitcoin and various aspects of crypto ecosystem is what is affected after bitcoin halving.
Why Bitcoin Halving is important
I. Supply and demand dynamics
2. Market volatility
3. Implications for miners
4. Technological and community development
5. Long-term investment implications.
This write up is sourced from Binance Academy, you could go there and read up.
Disclaimer: This content is information and educational driven, this is not a financial advice, Always seek advice from appropriate professional advisors and Do your own research(DYOR) before investing in any crypto project.