What is the Bitcoin halving?

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What is the Bitcoin halving?

If you are a crypto fan or even interested in the cryptocurrency industry then you will never hear about the next half of Bitcoin, unless you have lived under a rock several times. There is no doubt that it is one of the most anticipated events of the crypto calendar in 2020. But what exactly is that?

Half Bitcoin reduction is a recurring event where the amount of Bitcoin (BTC) given to miners is cut in half.

Where fiat currencies such as the Euro are issued by central banks, there is no central body that issues Bitcoin. Instead, it is coded into the Bitcoin protocol that the new Bitcoin is 'issued' as a gift to miners for validating 'blocking'.

Block on the Bitcoin blockchain is a file that stores 1MB worth of Bitcoin transaction records. In the case of Bitcoin, blocks are added to the blockchain through a consensus mechanism called proof of work (PoW). At PoW, miners compete to add the next block in the chain by using hardware resources to solve complex mathematical problems. This produces a hash - output of 64 characters that seems random.

After the hash has been found, the block is closed and cannot be changed. After successfully mining the block, the miner is given a newly created Bitcoin prize. This process occurs approximately every 10 minutes.

When Bitcoin was first re-released in 2009, the prize was 50 BTC per block, which by today's standards is a large prize, but termination is programmed to be carried out every 210,000 blocks that have been mined, which roughly takes four years with a refund less for the number of prizes.

In 2012, it was reduced to 25 BTC per block. Then in 2016, it was reduced to 12.5 BTC per block. Splitting these two years will see the block prize fall from 12.5 to 6.25 Bitcoin. The fourth split is expected in 2024 when the prize will fall to 3,125 new BTC, and so on for each of the next four years.

But how do we really have to do half of Bitcoin?

Can accept Bitcoin up to 21 million units with its default algorithm. No more than ever! There is no way to game the system here I'm afraid.

Bitcoin is operated on a deflationary model. This means, little by little, the less Bitcoin will be released over time until the supply stops completely. At present there are around 18 million BTC visited, which is about 85% of the total closed. The last bitcoin must be mined around 2140.

Read! Is Bitcoin Halving?

This is very different from fiat money, which uses an inflation model. Inflation is a model in which the central bank can assess additional currencies at will - thinking quantitative easing brought about in the global crisis, this is a practice that is often criticized and used widely as a major economic problem. Nobody can expand their Bitcoin inventory even if they don't want to.

Limiting has also proven a good way to encourage adoption. This should provide incentives for potential adopters & investors who are thinking ahead to buy Bitcoin before it runs out.

In essence, half is a transition programmed into the Bitcoin code that is designed to prevent conversion. This is designed to prevent miners for all Bitcoin too quickly and thereby transfer requests.

When should I receive the date?

Half reduction is programmed to be done after every 210,000 blocks that have been mined take about four years. After reaching the 630000 block which is currently expected to occur on May 12, 2020 at the current block production rate. Read! When Is Bitcoin Halving?

Will the price of Bitcoin go up or down?

In the past, half meant an Increase in Price. The first half reduction occurred on November 28, 2012, a compilation of one BTC was only worth $ 11. The second reduction occurred in July 2016. Bitcoin held prices around $ 600 - $ 700 before firing up to $ 20,000 at the end of 2017

The cryptocurrency space is very different now and much more mature, with half the impact more difficult to predict. With many institutional investors and products such as Bitcoin futures which means deductions for inventory are far more likely to be bought than previously thought. There are also cryptocurrency besides Bitcoin Cash and XRP for sale, offering more competition for investors compared to before.

Read! What is the Bitcoin halving?

If you look at Twitter crypto there must be two camps where half the price will fall to the moon and the other half. Of course there is debate for that, the debate about the economy is currently in a very dangerous position with the ongoing global pandemic. What you sit in this camp is a very exciting time to be part of the new financial system and watch from the sidelines.