WORD OF THE DAY *HALVING*

What is Halving?

Halving refers to the reduction in the reward that miners receive for validating and adding new transactions to the blockchain.

Imagine Domino’s pizza offers a special promotion. Every year, they cut the price of their pizzas in half for a day. So, if pizza usually costs $20, during this special event, it would only be $10.

Bitcoin's halving, which occurs approximately every four years, is akin to a special promotion in the cryptocurrency world. Instead of discounted prices, it involves a halving of the reward for Bitcoin miners, who validate and process transactions. If, for instance, their reward was 30 bitcoins before the halving, it reduces to 15 bitcoins after. This reduction affects Bitcoin's supply and demand dynamics. With fewer new bitcoins in circulation, it can lead to increased demand, potentially influencing the market price.

Now that you understand the idea of halving, share your thoughts on how you are getting ready for bitcoin's halving😊