Halving (dividing production in half, halving) is the period when the reward for miners in the Bitcoin network is reduced by 2 times. This event occurs every 210,000 blocks or every 4 years, and is a key feature of Bitcoin in ensuring the necessary shortage of coins, subject to the maximum emission of 21 million BTC included in the Bitcoin protocol.
To date, more than 18.5 million bitcoin coins have already been mined over the 12 years of existence and successful operation of the cryptocurrency, and it would seem that those small balances of 2.5 million BTC will soon end. However, it is the halving that will provide miners with work for another 120-200 years.
How would this happen?
A total of 64 halvings are planned, three are already behind us (in November 2012 - then the reward decreased from
50 BTC to 25 BTC, in June 2016 - reduction from
25 BTC to 12.5 BTC, in May 2020 - from 12.5 BTC to
6,25 BTC).
And each time the number of coins mined over a certain time, the segment will decrease. Those. if with a reward of 12.5 BTC for 4 years (210,000 blocks) it was mined
2.625 million BTC, then after the last halving on May 11, 2020, over the next four years, with a reward of 6.25 BTC for each block, a total of 1.3125 million coins will be mined.
That is, after each of the upcoming halvings, the number of bitcoins mined over a 4-year period is halved, and the time frame for mining the planned maximum increases.
That is why until today so much has been mined in a decade, and in the future so little will be mined in as many as 100 years.
The halving will continue every 210,000 blocks or every 4 years, that is, until the reward reaches 1 satoshi, the smallest unit of measurement equal to 0.00000001 BTC. After this, miners will only earn from transaction fees.
#halving #Bitcoin #Twenty_Two_Crypto
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