THE INCREDIBLE TALE OF BITCOIN HALVING: FACTS & IMPACTS
Bitcoin Halving process occurs once every 4 years and it is an event that halves the rate of new Bitcoin creation.
As a known fact being that Bitcoin’s supply is finite, once 21 million coins are created, the network would stop producing more.
As of now there are about 18 million BTC being circulated, which is 85% of total cap but cryptocurrency is not going to reach its limit anytime soon. The reason being the protocol that was coded in the blockchain from the very beginning.
Every 210,000 blocks, the so called Bitcoin “halving or halvening” is performed and producing new coins become more tough just like in the case of gold mining where finding new deposits get difficult with time.
BLOCK REWARD
A block reward is the amount, the miners receive in terms of cryptocurrency when they successfully mine or validate a new block when they solve complex mathematical calculations for the transactions that occur in the blocks. Each block is around 1 MB by size.
FEW INTERESTING FACTS OF BITCOIN HALVING
-This is the 3rd bitcoin halving and the halving is expected to happen in May/June 2020
-After 2020 bitcoin halving, only 900 bitcoins will be created per day.
-85% of all bitcoins will already been ,mined at the time of halving.
-Bitcoins inflation will be 1.8% after the halving which is lower than that of Gold.
-Historically speaking, each halving marked the beginning of the new Bitcoin bull run.
-Soon after the halving, only 3.15 million bitcoins will be left unmined.
Everybody must be curious to know as to when will the last halving occur? It is pretty much expected to occur in the year 2140 as the 21 millionth BTC is mined. Once the last halving is done, the miners will stop receiving block rewards.
WHY IS BITCOIN HALVING NECESSARY?
1. It creates inadequacy which is predictable
2. There are potential price fluctuations
Both the previous bitcoin halving preceded a big surge in bitcoin’s price. Apparently there are many theories as to how Bitcoin’s price can be modeled, but all of them key on the total supply of Bitcoin. Since, every halving reduces the generation of new Bitcoins, released into market by half, these events are extremely dependent of consequential to Bitcoin’s price.
