Have you ever heard about Bitcoin halving and wondering what it is? Then this article should be helpful foryou.
Let’s find out what “halving” means. Currently, when miners add a new block to the Bitcoin blockchain, they receive 12.5 BTC as a reward. This reward is halved every four years or when 210.000 bitcoins have been mined. So after May 2020, miners will get 6.25 BTC for adding a new block.
This event is what people in the crypto world call the ‘Bitcoin Halving’.
It occurs every time 210,000 bitcoins are mined — or every four years. And if you have invested money into Bitcoin, or plan to do so in the near future, this event can have a major impact on your next move.
Why is halving important?
The action is required to keep Bitcoin away from inflation. There is a limit of 21 million bitcoins that can be mined in total. From the beginning, the mining process and supply have been controlled and restricted through this process.
What will happen during the next halving event?
The honest answer is that nobody knows.
We can only guess.
So far 2 Bitcoin halvings have taken place. During both halving events, the price of Bitcoin increased in value. And more importantly, after both halving events, Bitcoin’s price never went below its value before the halving events took place.
So let’s hope the story will repeat itself.
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