What is Bitcoin Halving?

Bitcoin Halving

Halving is the timing when the mining reward of a cryptocurrency is halved.

For example, in the case of bitcoin (BTC), you can earn bitcoins (BTC) by mining, which is the process of approving transactions.

However, when Bitcoin Halving occurs, the quantity of Bitcoins (BTC) that can be obtained as a reward for mining will be halved.

Bitcoin Halving and the Change in Reward Volume

In the case of Bitcoin, the half-life is set to occur once every four years. Theoretically, the price of the currency is expected to rise just before the half-life because the supply of the currency will decrease.

When Bitcoin was first created, the mining reward was 50 BTC per block.

  • The first Bitcoin Halving was in November 2012, when the mining reward was halved from 50 BTC to 25 BTC.
  • The second Bitcoin Halving was in December 2016, when the mining reward went from 25 BTC to 12.5 BTC.
  • The third Bitcoin Halving was in May 2020, when the mining reward went from 12.5 BTC to 6.25 BTC.

It is said that the last block with mining rewards will be reached around 2140.

Pros of Halving

Virtual currencies have an issuance cap to prevent inflation.

As the supply decreases, the scarcity value of the cryptocurrency increases, making it easier for the price of the coin to soar.

However, there are some cryptocurrencies (such as Ethereum) that do not have Halving set in place.

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