When bitcoin first started 50 bitcoins per block were given as a reward to miners. They wanted new coins to be released gradually into the market but at the same time it was crucial for a generous supply of bitcoin to start circulating sooner rather than later.
This tightening supply should provide a bullish scenario for the asset over time.
Bitcoin halving now. Looking back at previous halving events we can see that the 12 18 months either side of the event have typically seen substantial gains for this cryptocurrency. This regular process will change how many bitcoin miners can create and more. The current annual bitcoin inflation is at 3 68 but after the 2020 halving the inflation will be cut in half to approximately 1 80.
The bitcoin community has now turned to what s next for the world s number one. Later today expected around 5pm edt the number of bitcoin rewarded to those that maintain the bitcoin network called miners will be cut by half dropping from 12 5 bitcoin to 6 25. To understand what the bitcoin halving is you must first understand the basics of bitcoin mining in short new bitcoins come into the world as a reward for miners whenever they mine a bitcoin block.
The bitcoin halving of 2020 will take place in may and pushes the block reward down from 6 25 bitcoins to 3 125 bitcoins per block. Miners who support the most valuable and revered blockchain network in the cryptocurrency ecosystem will now earn half as much as they used to 6 25 btc per block just as satoshi nakamoto designed. The bitcoin halving one of the most anticipated events in the crypto world finally happened today at 19 23 utc by antpool.
First that the supply of bitcoin is finite and. When satoshi nakamoto set up the rules for the bitcoin protocol he stated two important things among others. Bitcoin s third halving in may 2020 is either the least or most important news in bitcoin in years.
As of now the block reward is 6 25 coins per block and will decrease to 3. What does bitcoin halving mean. Bitcoin underwent a halving event on 11 may 2020 with the rewards for mining now 50 lower as a result.
What is a bitcoin halving. After every 210 000 blocks are mined approximately every 4 years the block reward halves and will keep on halving until the block reward per block becomes 0 approximately by year 2140. In all their infinite wisdom bitcoin s anonymous inventor satoshi nakamoto decided that only 21 million btc would ever exist.
Bitcoin successfully went through its third halving yesterday seeing the daily supply of new bitcoin cut by half.