After months of anticipation and way too much hype the bitcoin halving event took place yesterday monday may 11. The scarcity of bitcoin then translates to value and the price rises.
In may 2020 bitcoin miners will go from.
Bitcoin halving what it means. A bitcoin halving event is when the reward for mining bitcoin transactions is cut in half. So called halving is when cryptocurrency mining companies and individuals find out the reduced payment that they will receive in return for their contribution to the system s smooth operation. The last bitcoin halving took place on may 11 2020 and the next halving will likely occur in 2024.
It happens approximately every four years or 210 000 blocks. That s the bitcoin halving in a nutshell. And the third most recent halving on may 11 2020 means bitcoin miners now receive 6 25.
What is the halving how does it affect the price and what does it mean for miners and the. Simply put that means the reward earned by the bitcoin miners for solving one. The bitcoin halving was designed by satoshi nakamoto to keep bitcoin s inflation in check.
One of the prominent reasons for this points to the theory of supply and demand. This would be the third halving event for bitcoin. As fewer bitcoin tokens are generated the value of those tokens increases.
Since the halving basically cuts the supply of new bitcoins in half many believe this event will have a dramatic effect on bitcoin s price. Bitcoin halving can be looked at like gold in this respect as gold is mined from the ground and mining it makes it exponentially more difficult to find and mine more thus making what has already been mined more valuable or at a minimum stabilizing its value. When bitcoin block 630 001 is reached predicted to take place on may 14 2020 the mining reward will drop from 12 5 btc to 6 25 btc per block.
At its simplest bitcoin halving is when the pace of new bitcoin creation is cut in half which happens about every four years. Bitcoin was created in 2008 by a person or group writing under the pseudonym satoshi nakamoto as a peer to peer decentralised electronic cash system. In the past the bitcoin halving has had a significant impact on the price of bitcoin.
The second halving was on july 9 2016 and the miner s reward was reduced from 25 bitcoins to 12 5 bitcoins. This event also cuts in half bitcoin s inflation rate and the rate at which new bitcoins enter. What is bitcoin halving.