What you need to know about bitcoin halving
If you are planning to invest in bitcoin trading and investment, you must have heard about a process called bitcoin halving. If you are new to the world of bitcoin transactions, it is important to know about the concepts of bitcoin halving.
Even if you have never heard of bitcoin halving, this article by bitcoin evolution app can help you in understanding the concept in a better way.
What is Bitcoin halving?
This is a simple process that involves halving bitcoin rewards. After the mining of bitcoins, miners get rewards in the form of bitcoin. Bitcoin halving is done after 210,000 blocks of bitcoins are mined.
The main reason behind bitcoin halving is that the number of bitcoin in circulation should not increase. An increase in bitcoin circulation can lead to an increase in the volatility associated with bitcoin.
How does bitcoin halving work?
The working of bitcoin halving is quite an easy process to understand. Once 210,000 blocks of bitcoins are mined, the rewards are reduced to half. More and more miners began to participate in the process, and the amount of bitcoin in circulation increased drastically. The fires 210,000 bitcoin blocks were mined till 2012, and after that, the reward was reduced to 25 bitcoins.
The second bitcoin halving took place in 2016, and the reward was cut to 12.5 bitcoins. The most recent halving was in 2020. Thus, the reward at present is 6.25 BTC.
It takes almost four years for 210,000 bitcoins to get mined. Thus, bitcoin halving happens at an interval of four years. The next bitcoin halving will take place in 2024.
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Source: What you need to know about bitcoin halving – Tech Guide