Information about Bitcoin halving...

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What is the Bitcoin halving?
Every day many new Bitcoins are added, this is done by Bitcoin mining. Mining sounds like the Bitcoin is being pulled out of the ground somewhere, but actually it has everything to do with computers. It is and remains, of course, a digital currency. With mining, a large network of strong computers ensures that a new block is added to the blockchain. This takes a lot of computing power and for that the owner of the computer (the miner) receives a reward in the form of new Bitcoin and the transaction costs. Only the first to put the block on the blockchain receives this reward. If you are looking for a more detailed explanation about cryptocurrency mining you can find it on our website. Yet in the past when Bitcoin just started, you could earn more Bitcoin when mining than now. This is due to Bitcoin halving and we would be happy to tell you more about it.

A maximum of Bitcoin
So every day new Bitcoin are added that can be used as payment or investment. Yet this will someday stop because there is a limit to the number of Bitcoins that will be issued. In total, 21 million Bitcoin will be available (20,999,999,9769 to be exact), and that is really the maximum. That sounds a lot, but you can imagine that with mining that number will actually be achieved. To slow down this process and to lower inflation, there is the Bitcoin halving.

Because of the Bitcoin halving, miners receive a smaller reward every 4 years
When Bitcoin was launched in 2009. Got a miner a reward of 50 Bitcoin. At that time it was not very much because the value of the coin was not very high at the time. Nowadays you would have a substantial capital with 50 Bitcoin. Because the value of Bitcoin increases and to be able to properly control the flow of new Bitcoin, the reward for the 210,000 newly added blocks in the block chain is halved. Because a new block is added every 10 minutes, this will happen every 4 years.

Bitcoin halving sounds like a huge damper for the Bitcoin miners, but as we said, Bitcoin halving also takes into account the value of the coin. Because the demand for Bitcoin will in all likelihood continue to rise, the value of 1 BTC will also rise. The 12.5 Bitcoin that gets a miner as a reward until 2020 is now worth much more than the 50 Bitcoin that got a miner in 2009.

When is the next Bitcoin halving?
The next Bitcoin halving is in 2020 and is expected in mid-May. You can see the exact date on this website. During this halving, the reward from 12.5 BTC is halved to 6.25 BTC. In general, if we look at the history, the price goes up after the halving. Is this a reason to buy Bitcoin? We can only know for sure when the time has come.

What if the Bitcoins are used up?
The reward will therefore be halved every 4 years. In 2032 the reward will be less than 1 Bitcoin. You will then only receive 0.771 Bitcoin as a reward. You can therefore imagine that if this is divided by 2 every 4 years, there will be little left of the reward. However, miners can continue to invest in their hardware to be the fastest with adding blocks to the blockchain. In addition to the reward, the miners also receive the transaction costs of the transactions that are bundled in a block.

NEXT KEY EVENT:
Expected week commencing 18 May 2020
630,000 6.25 new BTC
1,312,500 BTC

Source: Dutch BTC community

bitcoinanp.jpg source: Google pictures

I want to thank you very much for reading my blog on the Bitcoin halving.
Have a good day end enjoy the ride 2020....

Kind regards,

@davidamsterdam



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